T-Bills sees 52% oversubscription rate
The 91, 182 and 364 day treasury bills auctioned by the Bank of Ghana (BoG) on behalf of the government, saw some GHS 1,712 million mobilised as credit from investors to the government.
The secured GHS 1,712 million was against a programmed auction target of GHS 1,125 million.
Government, in accepting the GHS 1,712 million bids tendered, exceeded its target by GHS 587 million.
A total of GHS 1,478m and GHS 198m bids were tendered in for the 91 day and 182 day with government accepting all bids tendered for the short term security.
For the 364-day bill, a total of GHS 43m was tendered with government accepting bids worth GHS 36m tendered for the debt security.
This, however, came at an increased cost to the government in the form of higher interest rates.
Interest rates on the 91, 182 and 364 days T-Bills were 35.9%, 36.1% and 36.05% respectively.
Returns on treasury bills continue to be negative given the country’s prevailing inflation rate of 54.1% at end-December 2022.
Meanwhile, in the upcoming issuance of the 91-day, 182-day and 364-day treasury bills on January 20, 2023, will be seeking to secure some GHS 2,415m in fresh funding to meet its short term financing needs.
The additional GHS 2,415m debt is expected to further entrench government’s public debt which is currently over 100% of GDP.
