T-bills auction: Investor interest continued to surge, but interest rates soar

Audio By Carbonatix

Investor interest in government treasuries continued to surge, as the government exceeded its target by 41%.

According to auction results by the Bank of Ghana, the total bids accepted were estimated at GH¢10.05 billion cedis, higher than the targeted amount of GH¢7.14 billion.

Interestingly, investors bid more for the 364-day bill than the 91-day and 182-day bills.

An estimated GH¢4.61 billion was tendered by the investor for the 364-day bill, representing 45.7% of the total bids. However, GH¢4.61 billion of the bids were accepted.

For the 91-day bill, GH¢2.75 billion of the bids were tendered. The uptake was GH¢2.74 billion.

The 182-day bill saw an estimated GH¢2.71 billion of the bids tendered. The bids accepted were a little over GH¢2.70 billion.

Meanwhile, interest rates continued to edge up on the yield curve.

The yield on the 91-day bill increased by 2.0 basis points to 11.19%.

That of the 182-day bill also went up to 12.64%, from 12.61% the previous week.

The yield on the 364-day bill also shot up by 8.0 basis points to 12.98%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	2.75bn	2.744bn
182 Day Bill	2.71bn	2.70bn
364 Day Bill	4.61bn	4.60bn

Total	10.08bn	10.05bn
Target	7.14bn

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