T-bills auction: Government exceeds target by 30%, but demand to remain relatively soft at next auction
The Treasury accepted GH¢1.77 billion of the total bids as against a target of GH¢2.24 billion.
The government's recent treasury bills auction surpassed its expectations by a substantial 30.52%, raising GH¢2.93 billion. Despite this impressive performance, demand for the securities remained relatively subdued. The Treasury managed to accept GH¢1.77 billion of the bids, falling short of its initial target of GH¢2.24 billion.
The 91-day bill led the auction, garnering GH¢2.2 billion in bids, or 98% of the total. The 182-day bill also saw significant interest, receiving about GH¢235.19 million in bids, which were accepted in full. For the 364-day bill, GH¢474.85 million worth of bids were accepted, representing slightly more than GH¢224 million.
As the auction concluded, interest rates continued to trend downwards. The yield on the 91-day bill decreased by 4.0 basis points to 4.64%, while the 182-day bill's yield fell to 6.31% from 6.67%. The 364-day bill's yield also dipped by 3.0 basis points to 9.80%.
Looking ahead, Databank Research predicts that demand will remain relatively soft at the next auction. The Treasury's modest funding requirements should ensure that the auction is comfortably covered, with yields remaining stable. The Securities Bids Tendered and Accepted data, presented in billions of Ghanaian Cedis (GH¢), illustrate the distribution of bids across the different bill maturities.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
