Investors Flood T-Bill Market With GHS 17.69 Billion Tendered Bids; Gov’t Accepts GHS 9.43 Billion Only
Investors, primarily banks, made bids totaling GHS 17.69 billion for the Government’s short-term debt instruments in last Friday’s auction.
The overwhelming subscription (119%) of the debt instruments is indicative of investors’ confidence in the domestic debt market and the Government’s ability to repay borrowed funds.
Bids made by primary dealers more than exceeded the Government’s target of raising GHS 8.06 billion in the auction.
Of the total bids made, the Government accepted some GHS 9.43 billion, rejecting some GHS 8.26 billion of the bids made.
The accepted GHS 9.43 billion bids were some GHS 1.36 billion higher than the Government’s GHS 8.06 billion auction target.
The GHS 9.43 billion accepted bids will be used to settle maturing bills worth GHS 7.5 billion.
The overwhelming bids made for the short-term debt instruments were notwithstanding declines in yields of the debt instruments.
The 91-day and 182-day bills recorded a 1.3% and 1.07% decline in yields ending the auction with interest rates of 26.85% and 27.80% respectively.
The 364-day bill ended with an interest rate of 29.07%.
In the next upcoming auction, the Government will be looking to raise an additional GHS 7.72 billion in debt, it is expected that the huge interest shown in the domestic debt market by investors will continue as the auction target is likely to be oversubscribed.
