T-bills auction: Government records 17% oversubscription; interest rates fall sharply

Audio By Carbonatix

Following three consecutive weeks of undersubscription, the treasury bills auction recorded an oversubscription of 17.8%.

According to auction results by the Bank of Ghana, the Treasury received GH¢6.53 billion of the total bids versus a target of GH¢5.54 billion. It, however, accepted GH¢5.97 billion.

About GH¢4.95 billion came from the 91-day bill, representing 75.82% of the total bids.

The uptake was GH¢4.58 billion.

For the 182-day bill, GH¢890.81 million were tendered. All the bids were accepted.

About GH¢689 million were also tendered for the 364-day bill. The uptake was GH¢499.76 million.

Meanwhile, interest rates fell sharply on the yield curve.

The yield on the 91-day bill declined by 18 basis points to 14.92%.

That of the 182-day also went down to 15.55% from the 15.68% the previous week.

The interest on the 364-day bill also went down by a whopping 78 basis points to 16%.

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