T-bills oversubscribed by 79% as one-year yield edges higher

The government recorded another strong treasury bill auction, attracting bids far above its target despite mixed movements in interest rates.

Results released by the Bank of Ghana showed that investors submitted bids worth GH¢10.5 billion against the government’s target of GH¢5.866 billion, representing an oversubscription of about 79%.

Out of the total bids received, the government accepted GH¢8.65 billion.

The 364-day bill continued to dominate investor demand, attracting GH¢7.47 billion in bids, equivalent to about 71% of the total amount tendered. Of that amount, GH¢7.17 billion was accepted.

'Something good is happening' - COPEC hails TOR's return to operations

The 91-day bill recorded bids of GH¢2.27 billion, with the government accepting about GH¢927 million.

Meanwhile, the 182-day bill attracted GH¢757.9 million in bids, of which GH¢501.38 million was accepted.

On the yield front, the 91-day treasury bill remained unchanged at 5.76%, while the 182-day bill eased slightly to 7.64% from 7.68% in the previous auction.

However, the yield on the 364-day bill increased by 2 basis points to 12.96%, signalling higher returns demanded by investors for the one-year instrument despite continued strong appetite for government securities.

DR/SA