Gov’t beats GHS 3.45bn T-Bill auction target by GHS 769m

The Government mobilized an amount of GHS 4.22bn from the issuance of the 91-day, 182-day, and 364-day T-Bills last Friday, April 12, 2024.

This was against a programmed target of GHS 3.45bn.

On the back of the bids accepted, the Treasury exceeded its target by some GHS 769m.

The GHS 4.22 billion accepted bids were detailed in the BoG auction results released on Friday evening.

The GHS 4.22 billion bids accepted by the Treasury imply a 22.2% oversubscription rate above the initial GHS 3.45 billion target.

The oversubscription of the short-term debt instrument is indicative of a rebound in appetite for Government T-Bills by primary dealers following the previous week’s undersubscription of the T-Bills.

The Treasury in the previous week, missed its T-Bills target of GHS 2.8bn by some GHS 248m.

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 3.60 billion, GHS 505 million, and GHS 117 million for the 91–Day, 182-Day, and 364-Day tenors respectively.

The auction yields settled at 25.73% for the 91-Day Bill and 28.14% for the 182-Day Bill with the yield on the 91-day bill remaining unchanged whereas the yield on the 182-day bill declined marginally by 0.08%.

The 364-Day bill also saw a yield decline of 0.09% to settle at 28.74%.

Looking ahead to the next auction, Government aims to raise some GHS 3.37 billion through the next issuance of the 91,182, and 364 Day bills to cater for impending maturities.

Source: Norvanreports