T-bills auction: Demand improves as government exceeds target by about 76%; interest rates soften
The Treasury, however, accepted GH¢4.40 billion of the total bids as against a target of GH¢2.86 billion.
The recent treasury bills auction saw a significant surge in demand, surpassing the government's target by approximately 76.4% to accumulate GH¢5.06 billion. Despite predictions from some analysts that investor interest would remain subdued, the Treasury managed to acquire GH¢4.40 billion of the bids, surpassing the initial target of GH¢2.86 billion.
The Bank of Ghana reported that the majority of the bids came from the 91-day instrument, with slightly over GH¢3.2 billion tendered, making up 64.9% of the total bids. The 182-day bill received bids amounting to about GH¢1.3 billion, while the 364-day bill saw bids of about GH¢468.9 million. As a result of the high demand, interest rates on the treasury bills have softened, leading to a reduction in the government's cost of domestic debt.
The yield on the 91-day bill decreased by 4.0 basis points to 4.60%, while the 182-day bill's yield dropped by 0.04 percentage points to 6.27%. The yield on the 364-day bill also saw a 5.0 basis point decrease to 9.75%.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
