Treasury beats T-Bill auction target by GHS 1.22bn; raises almost GHS 4bn in new debt
The Bank of Ghana’s Treasury bills auction, target of GHS 2,632 million, received GHS 1,229 million bids more from investors last week.
Bids amounting to GHS 3,861 million, were accepted during this auction.
Among the various tenors, the 91-day Bill attracted the highest number of subscriptions, followed by the 182-Day Bill and the 364-Day Bill.
The successful bids after the auction amounted to GHS 2,837 million, GHS 839 million, and GHS 185 million for the 91–Day, 182-Day, and 364-Day tenors respectively.
The auction yields settled at averages of 29.03% for the 91-Day Bill and 31.51% for the 182-Day Bill with both declining by 16bps and 23bps respectively compared to the average rates for the previous auction.
The 364-Day bill also saw a yield decline of 26bps to settle at 32.08%.
Looking ahead to the next auction, the treasury aims to raise some GHS 3,058 million through the issuance of the 91,182, and 364 Day bills to cater for impending maturities.
Meanwhile, the Treasury is seeking to borrow some GHS 12.7 billion in treasury bills for January 2024 to finance maturing bills.
The expected GHS 12.7bn to be borrowed for this month is 1.2% lower than the GHS 12.8bn borrowed in December 2023.
Demand for treasury bills remained generally strong in December 2023.
Investors submitted total bids of GHS16.3 billion across the T-bills, representing an average weekly bid size of GHS 4 billion and exceeding the total maturities of GHS 12.8 billion.
Already, the government has raised GHS 3.2 billion in the first auction of 2024 which is 15.24% more than the targeted amount of GHS 2.7bn.
