T-bills auction: Government records 15.3% oversubscription; interest rates hit 30.69%

Government recorded a 15.35% oversubscription of treasury bills sale but at a higher cost.

According to auction result from the Bank of Ghana, the government received ¢3.507 billion from the sale of the short term securities. Total bids tendered were estimated at ¢3.535 billion.

Chunk of the T-bills sale came from the 91-day bill. ¢2.526 billion was secured, as government accepted almost all the bids.

For the 182-day bill, ¢261.69 million was obtained from the bids tendered. In actual fact, the government accepted all the bids.

This time around, the bids received for the one-year bill were over three times more than that of the six-month bill. Indeed ¢747.81 were the bids tendered, but the government accepted ¢721.03 of the bids offered.

Meanwhile, interest rates shot up across the yield curve.

Whilst the 91-day bill went up to 26.09% from 25.57% the previous week, that of the 182-day bill rose 0.31% to 27.59%.

The 364-day bill also reached 30.69%, from the 30.49% recorded the preceding week.

Analysts anticipate that the rising interest rates will continue till government conclude the debt restructuring.

Government to borrow ¢38.959bn via T-bills in quarter 3, 2023

Last week, the government said it will borrow a whopping ¢38.959 billion via treasury bills for the third quarter of 2023.

According to its issuance calendar released by the Ministry of Finance, this will be done via the issuance of the 91-day, 182-day and 364-day bills.

The short term debt instruments will be issued weekly to meet government rising liquidity needs.

Securities	Bids Tendered (GH¢)	Bids Accepted (GH¢)
91 Day Bill	2.525 billion	2.525 billion
182 Day Bill	261.69 million	261.69 million
364 Day Bil1	747.81 million	721.03 million
Total	3.535 billion	3507.87 billion
Target	3.065 billion