T-bills: Government records 19% oversubscription, but interest rates rise

Audio By Carbonatix

The government recorded a 19.0% oversubscription of treasury bills for the fifth week running.

The target for the auction was estimated at GH¢3.3 billion, but the government got GH¢3.95 billion, about 19.69% oversubscription.

It however accepted GH¢3.89 billion of the total bids.

According to auction results by the Bank o Ghana, a little over 61% of the bids came from the 91-day bill. GH¢2.449 billion of the bids were tendered. The uptake was GH¢2.447 billion.

For the 182-day bill, GH¢781.43 million of the bids were tendered. The bids accepted were estimated to the tune of GH¢726.43 million.

Also, GH¢726.43 million of the bids were tendered for the 364-day bill. The same amount of the bids were accepted.

Meanwhile, interest rates increased across the yield curve.

The yield on the 91-day bill went up by a basis point to 11.09%.

That of the 182-day bill, also jumped to 12.52%, from 12.43% the previous week.

The yield on the 364-day bill rose by 3.0 basis points to 12.94%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	2.449bn	2.447bn
182 Day Bill	781.43m	726.43mn
364 Day Bill	726.43mn	726.43mn

Total	3.957bn	3.897bn
Target	3.306bn

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