T-bills auction: Government returns to oversubscription; interest rates ease again

The government recorded an oversubscription of its treasury bills after failing to meet its target in the previous auction.

According to auction results by the Bank of Ghana, the government recorded an 18.23% of the T-bills sale.

The government got GH¢7.265 billion, but rejected GH¢1.12 billion of the bids tendered.

About GH¢5.320 billion came from the 91-day bill, representing 73.23% of the total bids. The bids accepted were estimated at GH¢5.210 billion.

For the 182-day bill, GH¢1.56 billion were tendered. The uptake was GH¢1.2 billion.

A little over GH¢381 million were also tendered for the 364-day bill.  About GH¢192 million of the bids were accepted.

Meanwhile, interest rates continued to fall, but marginally on the yield curve.

The yield on the 91-day bill declined marginally by 13 basis points to 15.32%.

That of the 182-day also eased to 16.03% from the previous week’s 16.21%.

The interest on the 364-day bill also dropped by 28 basis points to 18.37%.