Treasury Bill auction oversubscribed by 22%


The Bank of Ghana has recently conducted its latest Treasury bills auction, which was oversubscribed by 22.00%, reflecting a high demand for government securities in the country.

The auction saw T-bills worth GH¢2,075.16 million accepted across 91-Day bills, GH¢398.65 million across 182-Day bills, and GH¢875.68 million across 364-Day bills.

However, the accepted bids were slightly lower than the tendered bids by GH¢28.96 million, representing an acceptance rate of 99.14%.

This is a marginal decline of 86 basis points (bps) compared to the previous week’s 355 bps increase. Despite the lower acceptance rate, the auction was still considered successful, reflecting strong investor interest in government short term securities.

The yields for the 91-Day and 364-Day bills declined by 2 bps and 19 bps, respectively, settling at 35.73% and 35.62%. The reduction in yields indicates a relatively lower return on investment for investors.

The Bank of Ghana has set a target of GH¢1,708.00 million for the next auction, which will feature 91-Day and 182-Day bills.

With the over subscription of the recent auction, it is expected that the next auction will also generate high demand, with investors looking to take advantage of the attractive yields on government securities.


Source : Norvanreports