Government exceeded its Treasury bills sale target by 57%, only a week after it returned to the trajectory of under-subscription.

This probably signals good times for the economy in the coming months.

According to the latest auctioning by the Bank of Ghana, government mobilized a little above GH¢1.85 billion, against a target of GH¢1.17 billion.

Once again, the investors showed more interest in the 91-day Treasury bills, as they subscribed about GH¢1.5 billion of the short term securities. However the government accepted a slightly lower amount of about GH¢1.46 billion.

The investors, largely banks also bought about GH¢249 million of the one-year bill because of the higher interest yield.

This comes as a huge boost to the economy, following about six consecutive weeks of under-subscription of the short term securities from middle of March 2021 to somewhere in May 2021, due to liquidity squeeze on the interbank market.

However, this oversubscription was aided by a slight increase in the interest yield of the 3-months bill.

It went up by 0.02% to 12.77% to attract more investors.

Some analysts will hail this latest development as liquidity improves on the market.

SecuritiesBids Tendered (GH¢)Bids Accepted (GH¢)Interest rate
91 Day Bill1.500 billion 1.468 billion12.77%
182 Day Bill102.24 million 99.85 million13.50%
    
                                            
Total1.852 billion1.817 billion 
Target1.177 billion

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.


DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.