Eased liquidity on the interbank market aids government exceed T-bill auction target by 60.2%
Government, in the auction of its 91 and 182 days treasury bills and a 2 year treasury note surpassed its target of raising Ghs 1.26 billion, accepting an additional Ghs 776 million bids made by institutional investors, particularly banks.
At the end of the Tender 1765 Government of Ghana (GoG) securities auction held on Friday, September 24, 2021, some Ghs 2.06 billion as against the target of Ghs 1.29 billion was raised.
Government, in the previous auction on September 17, failed to meet its target of Ghs 1.47 billion in the auction of its 91 and 182-day treasury bills and a 1 year note, securing only Ghs 1.20 billion from investors.
Government in the auction on September 17, fell short of its target by 18.11% as investors decided to patronise the 91-day Treasury Bills, subscribing Ghs 878.41 million of the short term securities. Ghs 137.25 million worth of the 182-day T-Bills was bought, whilst for the 1-year bill, Ghs 192.20 million was sold.
Auction results for Tender 1765 made available by the Bank of Ghana (BoG), reveal bids submitted by investors for the 91 and 182 days T-bills issued at a discount rates of 12 percent and 12.2 percent were Ghs 454 million and Ghs 696 million respectively.
Government for the 91 and 182 days T-bills accepted all bids tendered in by investors.
For the 2 year treasury note, total bids tendered amounted to Ghs 926 million, with government rejecting Ghs 10 million of the total bids submitted by investors for the debt security.
The 2 year treasury note was issued at an interest rate of 17 percent.
The over-subscription of the government’s debt securities by institutional investors particularly banks, can be attributed to the easing of liquidity on the interbank market.
On the back of a successful issuance, the government is once again be looking to raise some Ghs 972 million on the domestic debt market with the auction of 91, 182 and 364 days T-bills this Friday, October 1, 2021.
The government is once again likely to exceed its target for the T-bills issuance if there is enough liquidity on the interbank market.
