T-bills auction: Government records 19.75% over-subscription; interest rates near 30%

The government recorded a 19.75% over-subscription of treasury bills barely a week after President Mahama won the presidential elections.

According to the Bank of Ghana’s T-bill auction results, demand for the short-term instruments soared following successful general elections.

The government got GH¢8.20 billion from selling the short-term instruments.

All the bids were accepted.

A little over GH¢6.740 billion were secured from the 91-day bill, representing 82.1% of the total bids.

For the 182-day bill, GH¢951.67 million were tendered.

The 364-day bill also recorded GH¢508.15 million from the sale of the 364-day bill.

Meanwhile, interest rates neared the 30% mark.

The yield on the 91-day bill increased by 17 basis points to 27.77%.

That of the 182-day bill was 28.49% from the previous week’s 28.32%.

The interest rate on the 364-day bill also went up by 3.0 basis points to 29.94%.

Source: myjoyonline.com