For the second week running, government’s Treasury bill sale was oversubscribed by a little over 30%.

Importantly, the 91-day bill was highly patronized by investors.

The target for this auctioning wasGH¢756 million, but government secured a little over GH¢988 million. This is appreciable looking at recent events whereby government struggled to raise enough funds from the Treasury bills auctioning, to repay loans and also finance the budget.

On the other hand, the government reduced the amount of money it accepted this time around.

For the 91-day T-Bill, the government mobilized a little over GH¢864 million cedis. The interest rate was 0.1% [14.08%] lower than the previous week sale [14.09%], indicating some cost savings for the government.

The government however mobilized GH¢ GH¢124 million at a yield of 14.14%

It is expected that the interest rate will go down further in the coming weeks.

Data from the Bank of Ghana indicates that the government treasury securities were priced [13.7%] lower than the present rate during the early part of last year.

Meanwhile, the improve sale of Treasury bill signals some level of investment interest in the short end of the market.

Treasury bill auctioning on 8^th January, 2021

Government T-Bills sale was oversubscribed by 8.7%.  

The Central Bank on behalf of the government sold GH¢1.07 billion of Treasury bills at a rate slightly higher than the previous auctioning.

 For the 91-day T-Bill, the government mobilized GH¢951.28 million at an interest rate of 14.09%.

 It however got a little above GH¢122 million for the 6-months bill at a rate of 14.14%