T-bills auction: Government exceeds target by 88%, interest rates tumble
The 91-day bill overtook the 364-day bill as the most patronised short-term instrument.
The government exceeded its treasury bill target by 88 percent during an auction, with investor interest surging. According to the Bank of Ghana's auction results, the government secured a substantial GH¢11.2 billion from investors. However, only about GH¢4.88 billion was accepted out of the total bids received. The 91-day bill emerged as the most popular short-term instrument, surpassing the 364-day bill.
Approximately GH¢5 billion of the bids were submitted, accounting for 44.9% of the overall bids. Around GH¢4.0 billion of these bids were ultimately accepted. The 364-day bill received bids worth GH¢4.9 billion, with an acceptance rate of GH¢289.70 million. Similarly, the 182-day bill garnered bids amounting to GH¢1.28 billion, of which about GH¢526 million was accepted.
Concurrently, interest rates across the yield curve experienced a notable decline. The yield on the 91-day bill dropped by 16 basis points to 5.46%. The 182-day bill's yield fell to 7.27% from the previous week's 7.57%, while the 364-day bill's yield decreased by 48 basis points to 12.50%.
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