Primary dealers oversubscribe short-term debt instruments by 58% as Treasury raises GHS 4.5bn in recent auction

The government’s treasury bill auction target of GHS 2,861 million received GHS 1,666 million bids more from primary dealers in the wholesale auction of the Government’s short-term debt securities by the Bank of Ghana.

Total bids made by primary dealers amounted to GHS 4,527 million with all the GHS 4,527 million bids made accepted by the Treasury indicating a 100% acceptance rate.

The GHS 4,527 million 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 on Friday, February 2, 2024.

The GHS 4,527 million bids accepted by the Treasury imply a 58.2% oversubscription rate above the initial GHS 2,861 million 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 1,914 million, GHS 1,211 million, and GHS 1,402 million for the 91–Day, 182-Day, and 364-Day tenors respectively.

The auction yields settled at averages of 28.29% for the 91-Day Bill and 30.79% for the 182-Day Bill with both declining by 30bps and 30bps respectively compared to the average rates for the previous auction.

The 364-Day bill also saw a yield decline of 40bps to settle at 31.39%.

Looking ahead to the next auction, the treasury aims to raise some GHS 4,587 million through the issuance of the 91,182, and 364 Day bills to cater for impending maturities.

Source:norevanreports