Treasury Bill auction records 99% acceptance rate from investors

The recent treasury bill auction by Government showcased robust participation, with total bids reaching GH¢3,535.76 million.

Notably, GH¢3,507.87 million of these bids were accepted, translating to a commendable acceptance rate of 99.21% by the Government.

Among the bill tenures, the 91-Day bill emerged as the star, garnering a substantial subscription of GH¢2,526.26 million.

In contrast, the 182-Day bill observed a decrease in subscription, amounting to GH¢261.69 million, down from the previous week’s GH¢649.39 million.

A marked surge in participation was witnessed for the 364-day bill, as bids worth GH¢747.81 million were tendered.

Despite the vibrant demand, interest rates maintained their upward trajectory. The 91-Day, 182-Day, and 364-Day bills noted respective increments of 52 basis points (bps), 32 bps, and 21 bps in their yields.

Consequently, yields settled at 26.09%, 27.60%, and 30.70%, echoing the prevailing trend of rising rates.

Looking ahead, the treasury aims to secure GH¢3,966.00 million through the issuance of 91, 182, and 364-Day bills this week.

The persistent demand for government securities, coupled with evolving interest rate dynamics, underscores the complexities faced by investors and issuers in navigating the contemporary financial landscape.

Source: Norvanreports