Treasury exceeds GHS 4.8bn T-Bill auction target by GHS 805m
The Treasury on Friday, February 16, 2024, exceeded its T-bill auction target of GHS 4.86 billion by some GHS 805 million.
At the close of the auction, the Treasury had mobilized bids totaling GHS 5.67bn.
All bids tendered by primary dealers were accepted by the Treasury indicating a 100% acceptance rate.
The GHS 5.67 billion accepted bids were detailed in the BoG auction results following the Central Bank’s post-auction meeting with the Central Securities Depository (CSD) and the Finance Ministry.
The GHS 5.67 billion bids accepted by the Treasury imply a 16.5% oversubscription rate above the initial GHS 4.86 billion target.
This is despite the reduction in yields across the three tenors – 91–Day, 182-Day, and 364-Day.
Among the various tenors, the 91-day Bill attracted the highest number of subscriptions, followed by the 364-Day Bill and the 182-Day Bill.
The successful bids after the auction amounted to GHS 2.42 billion, GHS 1.28 billion, and GHS 1.96 billion for the 91–Day, 182-Day, and 364-Day tenors respectively.
The auction yields settled at averages of 27.89% for the 91-Day Bill and 30.39% for the 182-Day Bill with both declining by 10bps and 4bps respectively compared to the average rates for the previous auction.
The 364-Day bill also saw a yield decline of 10bps to settle at 30.89%.
Looking ahead to the next auction, the treasury aims to raise some GHS 6.26 billion through the issuance of the 91,182, and 364 Day bills to cater for impending maturities.
Meanwhile, the government is expected to borrow about GHS 180 billion via treasury bills in 2024.
This will be 21% more than the GHS 149.92 billion raised in 2023.
The estimated maturities are GHS 150 billion, a growth of 28% over that of last year.
The government is also expected to raise more than 50% of the GHS 61.9 billion budget deficit through treasury bills.
Indeed, treasury bills are set to remain the dominant driver of activity on the Ghana Fixed Income Market this year.
