T-Bill auction sees 7.5% oversubscription rate and gains in yields
The Bank of Ghana recently held a highly successful Treasury bills auction, which garnered widespread interest from investors both in Ghana and abroad. With a total value of GH¢1,666.00 million, the auction saw oversubscription of 7.54%, with investors expressing keen interest in investing in the T-bills.
The Bank of Ghana accepted bids totaling GH¢1,476.66 million, GH¢227.11 million, and GH¢87.81 million for the 91-Days, 182-Days, and 364-Days T-Bill auctions, respectively. This represents a 100% acceptance rate, highlighting the strong demand for these instruments.
The oversubscription of the auction reflects the current favorable conditions in the Ghanaian economy, which has been marked by a stable macroeconomic environment, a diversified and growing economy, and investor-friendly policies. As such, the Bank of Ghana has continued to offer a range of investment instruments to help support this growth, with the T-bills auctions being a prime example.
Moreover, the gains recorded in the 91-Days and 182-Days T-Bills, which saw their respective yields increase by 5bps and 22bps to settle at 19.74% and 22.47%, respectively, indicates the robust appetite for short-term investments among investors. This is a clear reflection of the ongoing search for yield in the global financial markets, where low-interest rates and high levels of market volatility continue to drive investors towards the relative safety and stability of fixed-income instruments.
The 364-Days T-Bills also recorded a drop in its yield, settling at 26.90%, which reflects the favorable outlook for the Ghanaian economy and the confidence investors have in the country’s fiscal and monetary policies.
Looking ahead, the Bank of Ghana has set a target of GH¢1,958.00 million for the next auction, Tender #1847, for the 91-Days, 182-Days, and 364-Days T-Bills. This is a clear indication of the central bank’s commitment to supporting the growth of the Ghanaian economy and providing a range of investment opportunities for investors.
The Bank of Ghana’s recent T-bills auction underscores the strong demand for short-term investments in the country, reflecting the favorable conditions in the economy and the confidence investors have in the country’s fiscal and monetary policies. The oversubscription of the auction and the gains recorded in the yields of the 91-Days and 182-Days T-Bills are positive indicators of the country’s growth prospects, and the Bank of Ghana’s ongoing commitment to supporting this growth.
