Government secures GH¢2.40 billion from T-bills sale, interest rate at 36%

The government secured GH¢2,405 million from the sale of treasury bills in its latest auction on December 9, 2022.

Treasury bills have witnessed some growing interest in the past weeks to obtain oversubscriptions after weeks of under subscriptions due to a lack of investor confidence.

Despite the soaring interest rates, the bills saw over 5 weeks of consecutive under subscriptions as the government failed to meet its targets.

The results from the auction showed that the 91-day bill sold at an interest rate of 35.5%, the 182-day bill at 36.5%, and the 364-day bill at 36.1%.

The 91-day bill however received GH¢1,422.18 million bids, GH¢921.21 million bids for the 182-day bill, and GH¢62.12 million for the 364-day bill.

The target for the auction was GH¢1,816 million.

The government announced that there will be no haircut on treasury bills as it plans to swap existing bonds and securities for fresh ones with new maturity dates.

It is not clear if the announcement accounts for the growing interest in the government’s treasury bills but it is strongly believed that that could account for it.

Meanwhile, the government is targeting GH¢1984 million in its next auction.

SSD/FNOQ