T-Bills Auction: Interest Rates Tumble To 20%; Govt Records 181% Oversubscription
Interest rates tumbled to 20% as investor demand for treasury bills soared. According to auction results by the Bank of Ghana, the yield on the 91-day bill fell by a significant 606 basis points to 20.79%. That of the 182-day bill also plummeted to 22.98% from the previous week’s 27.89%. The rate on the 364-day bill also took a nosedive by 638 basis points to 22.69%.
The significant fall in interest rates is in line with many analysts’ forecasts. Renewed investor confidence, coupled with the government’s quest to revive a struggling economy, has also played a major role. Meanwhile, the government recorded about 181% oversubscription of the T-bills sale to the tune of GH¢18.248 billion.
The Treasury accepted GH¢7.41 billion of the bids tendered as against a target of GH¢6.493 billion. Yet again, the one-year bill received the highest bids worth GH¢8.72 billion, representing about 47% of the total bids. The government only took GH¢2.05 billion of the bids. The 91-day bills saw bids worth GH¢6.206 billion tendered.
The uptake was GH¢2.379 billion. For the 182-day bill, GH¢3.320 billion were tendered. About GH¢3.02 billion were accepted.
