91, 182 day T-Bills oversubscribed by GHS 297m

Government, on Republic Day, Friday, July 1, 2022, auctioned a 91 and 182 day T-Bill which was oversubscribed by some GHS 297m.

Funds secured at the close of the auction totaled GHS 826m as against the target of GHS 529m.

Bidders present at the auction tendered in a total amount of GHS 649m for the 91 day T-Bill of which the government accepted GHS 597m rejecting GHS 52m.

For the 182 day T-Bill, a total amount of GHS 276m was tendered in, however, government on its part accepted a total of GHS 229m rejecting some GHS 47m.

The two short term dated debt instruments were auctioned at interest rates of 25% and 26% respectively.

The high interest rate on government’s short term debt instruments, is reflective of the Bank of Ghana’s policy rate hikes as well as government’s desire to make its debt instruments more attractive to investors.

The oversubscription of government’s 91 and 182 day T-Bills indicates an easing of liquidity on the interbank market and the  willingness of investors particularly local investors, to buy into the debt instruments.

Government, in its next auction, will be looking to raise a total of GHS 928m in the issuance of the 91, 182 and 364 day T-Bills.

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