Gov’t beats GHS 3.98bn auction target by GHS 739m amid reduced yields
In the recent auction conducted by the Bank of Ghana (BoG) on behalf of the government, investor appetite for short-term treasury bills surpassed expectations, resulting in an oversubscription of GHS 739 million.
The successful mobilization of GHS 4,723 million against a programmed target of GHS 3,984 million underscores growing confidence in the government’s fiscal management.
Investors demonstrated robust interest across the board, tendering GHS 3,150 million and GHS 782 million for the 91-day and 182-day bills, respectively. Additionally, the 364-day bill attracted GHS 791 million in bids. Notably, the government accepted all tenders, reflecting a strong demand for short-term debt securities.
The oversubscription was despite a reduction in yields on the 91, 182, and 364-day Treasury Bills. Yields on the 91, 182, and 364-day Treasury Bills declined by 0.5%, 0.8% and 1% respectively.
As of the latest auction, interest rates stood at 29%, 31.1%, and 32.4% for the 91, 182, and 364-day T-Bills from the previous week’s interest rates of 29.5%, 31.9%, and 33.4% respectively.
Looking ahead, the government aims to secure GHS 2,594 million in fresh funding through the issuance of 91-day, 182-day, and 364-day treasury bills scheduled for December 22, 2023. This forward-looking approach underscores the government’s commitment to addressing short-term financing needs proactively.
The oversubscription of the recent treasury bills, coupled with the reduction in interest rates, paints a positive picture of investor confidence in the government’s financial management under the IMF programme. As the government seeks fresh funding, market participants will closely watch for any shifts in investor sentiment and evolving market dynamics
