T-bills auction: Government secures nearly GH¢5bn; interest rates fall again

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Demand for treasury bills surged as interest rates took another nose dive on the money market.

According to the Bank of Ghana auction results, the government secured nearly GH¢5 billion from the T-bills sale, about 33.8% oversubscription.

A chunk of the bids came from the 91-day bill.

About GH¢3.825 billion, representing 77.7% were tendered. All the bids were accepted.

That of the 182-day bill was estimated at GH¢822.39 million. The uptake was also the same.

For the 364-day bill, GH¢272.62 million was tendered. All the bids were accepted.

Meanwhile, interest rates continued to nose-dived as the yield on the 91-day T-bill almost eased by 25 basis points to 25.0%.

The interest rate on the 182-day bill also decreased to 26.99% from 27.39% the previous week.

But the yield on the 364-day bill remained relatively the same at 27.99%.

Most analysts believe the government will continue to borrow heavily from the treasury market to finance its expenditure.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	3.825 billion	3.825 billion
182 Day Bill	822.39 million	822.39 million
364 Day Bill	272.62 million	272.62 million

Total	4.920 billion	4.920 billion
Target	3.677 billion

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