T-bills auction: Government rejects GH¢10.865bn, interest rates plummet to 24%

The government rejected GH¢10.865 billion of bids tendered for treasury bills as demand for the short-term instruments reached a record high.

The Treasury registered a 140.5% oversubscription to the tune of GH¢20.49 billion.

It accepted GH¢9.634 billion, higher than the target of GH¢7.72 billion.

The 364-day bill received the highest bids estimated at GH¢8.11 billion, about 39.56% of the total bids. A little over GH¢3.9 billion were accepted.

For the 91-day bill, about GH¢7.38 billion, representing 36.02% of the total bids were tendered. A little above GH¢4.2 billion were accepted.

The 182-day bill also saw bids worth about GH¢5 billion tendered. About GH¢1.43 billion bids were accepted.

Meanwhile, interest rates took a nosedive, reducing the government’s cost of borrowing.

The yield on the 91-day bill went down by 238 basis points to 24.47%.

That of the 182-day bill also declined to 25.38% from the previous 27.80%.

Similarly, the 364-day bill was reduced by 178 basis points to 27.29%.