T-bills: Government gets GH¢17.69 billion in bids, accepts GH¢9.43 billion on Valentine's day

Treasury bills have once again seen massive demand in the latest auction held on February 14, 2025.

The government recorded GH¢17.69 billion in bids but rejected excess bids worth GH¢8.265 billion, surpassing its target of GH¢8.068 billion.

According to the recent auction results, the 91-day and 364-day bills received the most bids in this week's auction. However, the government accepted GH¢9.434 billion from the 91-day, 182-day, and 364-day bills.

In the February 7, 2025, auction, the 91-day bill saw strong demand, with GH¢6.820 billion in bids tendered, out of which GH¢5.226 billion was accepted.

For the 182-day bill, GH¢4.594 billion in bids were tendered, but only GH¢1.457 billion was accepted.

Additionally, GH¢6.284 billion in bids were submitted for the 364-day bill, of which GH¢2.750 billion was accepted.

Interest rates for the bills dropped marginally in the auction issued on February 17, 2025.

Currently, the rate for the 91-day bill stands at 26.85%, down from last week's 27.98%, while the 182-day bill fell to 27.80% from 28.68% last week. The interest rate for the 364-day bill stands at 29.07%.

Last week, the government sold GH¢7.650 billion out of the GH¢10.559 billion tendered.

The government's rejection of excess bids signals either a cautious borrowing approach or an effort to avoid high interest rates.

Although interest rates remain higher than the inflation rate, they will increase the government’s repayment costs when the bills mature.

The recent oversubscription indicates strong investor confidence in short-term instruments.

Meanwhile, the government intends to borrow GH¢7.729 billion in its next auction.

Treasury bills remain the government's primary source of borrowing until it regains access to the international capital market.

SSD/MA

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