BoG T-Bills oversubscribed by 51.68% in recent auction
The Bank of Ghana recently conducted a Treasury bills auction that witnessed a significant level of oversubscription. The auction, which was valued at GH¢2,417.00 million, saw a 51.68% oversubscription rate, indicating a strong appetite for T-bills among investors.
At the end of the auction, the Bank of Ghana accepted bids worth GH¢2,906.79 million and GH¢972.49 million for the 91-Day and 182-Day T-bills, respectively. While the accepted bids fell below the tendered bids, with a 78.83% acceptance rate, it was still an impressive result, indicating strong demand for T-bills.
The decline in the yields for both the 91-Day and 182-Day T-bills was notable. The 91-Day T-bills recorded a decline of 146 basis points, settling at 18.53%, while the 182-Day T-bills saw a decline of 158 basis points, settling at 21.27%. These yield declines suggest that the demand for T-bills may have been driven by investors looking for a safe-haven investment option amidst market uncertainty.
Looking ahead, the Bank of Ghana has set a target of GH¢3,206.00 million for both the 91-Day and 182-Day T-bills in the next auction, which is designated as Tender #1843. This target indicates that the Bank of Ghana is seeking to raise more funds through the sale of T-bills.
It is important to note that T-bills have been an important part of the Bank of Ghana’s debt management strategy in recent years. T-bills provide the government with a way to borrow money from the public while also offering investors a low-risk investment option. The oversubscription rate seen in the recent auction indicates that T-bills continue to be a popular investment choice among investors in Ghana.
The Bank of Ghana’s recent T-bill auction showed a strong demand for T-bills among investors, as evidenced by the high level of oversubscription. The target for the next auction indicates that the Bank of Ghana is looking to raise more funds through T-bills. Overall, T-bills continue to be an important part of the country’s debt management strategy, offering investors a low-risk investment option while also providing the government with a way to borrow funds from the public.
