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 a staggering 88 percent during the latest auction, as investor interest surged. According to the Bank of Ghana's auction results, the government secured a significant GH¢11.2 billion from investors, accepting GH¢4.88 billion of the bids. The 91-day bill emerged as the most popular short-term instrument, surpassing the 364-day bill.
A total of GH¢5 billion in bids were submitted, accounting for 44.9% of the total bids. Of these, just over GH¢4 billion were accepted. The 364-day bill received bids worth GH¢4.9 billion, with an acceptance of GH¢289.7 million. The 182-day bill garnered bids amounting to GH¢1.28 billion, with GH¢526.4 million accepted.
As a result of the increased demand, 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 also decreased to 7.27% from the previous week's 7.57%. Similarly, the 364-day bill's yield fell by 48 basis points to 12.50%.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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