T-Bills oversubscribed by nearly GHS 480m as Gov’t rakes in GHS 3.7bn
The 91, 182, and 364-day treasury bills auctioned by the Bank of Ghana (BoG) on behalf of the government, saw some GHS 3,746 million mobilised as credit from investors to the government.
The secured GHS 3,746 million was against a programmed auction target of GHS 3,266 million.
The government, in accepting the GHS 3,746 million bids tendered, exceeded its target by GHS 480 million.
A total of GHS 2,452m and GHS 568m bids were tendered for the 91 day and 182 day with the government accepting all bids tendered for the short-term debt securities.
For the 364-day bill, a total of GHS 726m was tendered with the government once again accepting all bids tendered for the debt security.
The oversubscription of the short-term debt securities was due to high interest rates and near-positive returns on the debt instruments for investors.
Returns on the short-term debt instruments particularly the 364-day bill with an interest rate of 33.4% has neared positive returns (1.8 percentage points away from reverting to the path of positive returns) given the dip in headline inflation from 38.1% in September to 35.2% in November 2023.
Interest rates on the 91, 182, and 364-day T-Bills as of the last auction were 29.7%, 31.8%, and 33.4% respectively.
Effectively, interest rates on the 91, 182, and 364-day T-Bills on a week-on-week basis remained largely unchanged with only the 91-day bill declining by 0.1%.
Meanwhile, in the upcoming issuance of the 91-day, 182-day, and 364-day treasury bills on November 24, 2023, the Government will be seeking to secure some GHS 3,587m in fresh funding to meet its short-term financing needs.
