Government exceeded its Treasury bills sale target for the third week running, showing some investor interest in the economy.

The Bank of Ghana sold bids worth GHS793.9 million of short term securities including the one year note on behalf of the government.  

The target for this auctioning was GHS733 million, meaning the government exceeded its target by GHS60.9 million cedis.

This is compared to the previous week’s GHS876 million target, which government surpassed by GHS43 million.

From the trading figures, the interest charged on the government instruments, appears to have remained steady or coming down albeit marginally.

For instance, yield on the 91-day T-Bill remained unchanged but the interest on the six months bill fell by 0.03%.

In the month of August, investors were demanding more yield when they were actually moving into other risk-free instruments that were giving them higher interest than the government treasuries.

Indeed, data had indicated that that the Government Treasury securities were priced at a rate of about 13.97% in the larger part of the second quarter of this year.

September MPC Report

Last month’s Monetary Policy Committee Report stated that interest rates on the money market saw mixed developments as rates on short to medium term instruments eased, but generally tightened at the longer-end in August this year.

On a year-on-year basis, the 91-day Treasury bill rate declined to about 14% in August 2020 from 14.7% a year ago.

Similarly, the interest rate on the 182-day instrument declined to 14.1% from 15.2%.

With the exception of the 6-year bond, yields on the 7-year, 10-year, 15-year, and 20-year bonds all increased.