T-bills auction: Government secures nearly GH¢5bn; interest rates fall again

Story By: myjoyonline.com

Demand for treasury bills surged as interest rates took another nose dive on the money market.

According to the Bank of Ghana auction results, the government secured nearly GH¢5 billion from the T-bills sale, about 33.8% oversubscription.

A chunk of the bids came from the 91-day bill.

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About GH¢3.825 billion, representing 77.7% were tendered. All the bids were accepted.

That of the 182-day bill was estimated at GH¢822.39 million. The uptake was also the same.

For the 364-day bill, GH¢272.62 million was tendered. All the bids were accepted.

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Meanwhile, interest rates continued to nose-dived as the yield on the 91-day T-bill almost eased by 25 basis points to 25.0%.

The interest rate on the 182-day bill also decreased to 26.99% from 27.39% the previous week.

But the yield on the 364-day bill remained relatively the same at 27.99%.

Most analysts believe the government will continue to borrow heavily from the treasury market to finance its expenditure.

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SECURITIES BIDS TENDERED (GH¢) BIDS ACCEPTED (GH¢)
91 Day Bill 3.825 billion 3.825 billion
182 Day Bill 822.39 million 822.39 million
364 Day Bill 272.62 million 272.62 million
Total 4.920 billion 4.920 billion
Target 3.677 billion
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