T-bills auction: Government records 19.5% oversubscription of sale but at higher cost

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The government recorded about 19.5% oversubscription of its Treasury bills sale, latest result from the Bank of Ghana has revealed.

However, the cost of borrowing the domestic instrument went up for the 15^th consecutive week.

The auction was oversubscribed due to the relatively smaller target of ¢1.77 billion.

According to the result published by the Bank of Ghana, the government got about ¢2.12 billion from the sale of short-term instruments.

A chunk of the bids came from the 91-day T-bill, where ¢1.812 billion were mobilised. The government, however, accepted all the bids tendered.

Again, the government accepted all the ¢313.59 million tendered for the 182-day bill.

Meanwhile, interest rates continue to surge as the 3-month bill increased by 0.29% to 24.39%.

Also, the rate on the 182-day bill shot up to 26.40%, from the previous 26.02%.

Fast forward, analysts are concerned about the rising interest costs as it may affect the government’s quest to cut domestic interest payments.

SECURITIES	BIDS TENDERED (GH	BIDS ACCEPTED (GH
91 Day Bill	1.812 billion	1,812.63 billion
182 Day Bill	313.59 million	313.59 million

TOTAL	2.126 billion	2.126 billion
TARGET	1.778 billion

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