T-Bill oversubscribed by 40.6% despite consecutive fall in interest rates for 3 months

Government mobilized an amount of GHS 4.75bn from issuance of the 91 day, 182 day and 364 day last Friday, March 22, 2024.

This was against a programmed target of GHS 3.38bn.

On the back of the bids accepted, the Treasury exceeded its target by some GHS 1.37bn.

The GHS 4.75 billion accepted bids were detailed in the BoG auction results released on Friday evening.

The GHS 4.75 billion bids accepted by the Treasury imply a 40.6% oversubscription rate above the initial GHS 3.38 billion target.

The oversubscription of the short-term debt instrument was despite the reduction in yields across the three tenors.

This would mark the 12th consecutive week of falling yields on the short-term debt instruments.

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 2.48 billion, GHS 1.34 billion, and GHS 927 million for the 91–Day, 182-Day, and 364-Day tenors respectively.

The auction yields settled at 25.99% for the 91-Day Bill and 28.49% for the 182-Day Bill with both declining by 50bps and 50bps respectively compared to the rates for the previous auction.

The 364-Day bill also saw a yield decline of 50bps to settle at 29.09%.

Looking ahead to the next auction, Government aims to raise some GHS 4.16 billion through the next issuance of the 91,182, and 364 Day bills to cater for impending maturities worth over GHS 41.3bn.

Source:norvanreports