T-bills auction: Government records more than 117% oversubscription; interest rates subside

Demand for treasury bills reached its highest level in recent times, as the government recorded more than 117% oversubscription of the short-term instruments.

According to the auction results by the Bank of Ghana, total bids from investors amounted to GH¢ 17.69 billion.

However, the government accepted GH¢ 9.43 billion.

The 91-day and the 364-day bills received the highest bids of more than GH¢ 6 billion each.

The 91-day bill received bids worth GH¢6.82 billion, representing 38.53% of the total bids.  A little above GH¢ 5.22 billion were accepted.

It was followed by the one-year bill in which the bids tendered were estimated at GH¢6.28 billion, about 35.50% of the total bids.  A little over GH¢2.75 billion were accepted.

The 182-day bill got bids worth GH¢4.59 billion. About GH¢1.45 billion were accepted.

Meanwhile, interest rates continued its downward trajectory.

The yield on the 91-day bill declined by 113 basis points to 26.85%.

That of the 182-day bill also went down to 27.80% compared to 27.98% the previous week.

The interest on the 364-day bill also dropped to 29.07%.