T-bills auction: Government exceeds target by 144%, interest rates tumble

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Investor interest in government treasuries continued to reach record highs as total bids tendered exceeded the target by over 144%.

According to auction results by the Bank of Ghana, total bids tendered were estimated at GH¢17.10 billion, but the government accepted GH¢12.3 billion.

The majority of the bids came from the 364-day bill, with an estimated GH¢6.54 billion tendered. This represented 38.2% of the total bids.

The uptake was GH¢5.9 billion.

For the 91-day bill, GH¢5.9 billion of the bids were tendered. The bids accepted were to the tune of GH¢2.7 billion.

Similarly, GH¢4.6 billion of the bids were tendered for the 182-day bill. A little over GH¢3.5 billion of the bids were accepted.

Meanwhile, interest rates fell across the yield curve.

This was as a result of the 250 basis points cut in the policy rate by the Bank of Ghana.

The yield on the 91-day bill dropped by 37 basis points to 10.82%.

That of the 182-day bill also declined to 12.38%, from the previous 12.66%.

Again, the yield on the 364-day bill eased by 24 basis points to 12.82%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	5.90bn	2.78bn
182 Day Bill	4.65bn	3.54bn
364 Day Bill	6.54bn	5.97bn

Total	17.10bn	12.30bn
Target	6.99bn

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