T-bills auction: Government records 80% oversubscription for first time in 2 months; interest rates mixed
Ghana's government recorded an oversubscription of its treasury bills for the first time in two months. According to the auction results by the Bank of Ghana, the Treasury recorded an 80% oversubscription of the short-term instruments. The government received GH¢7.8 billion of the total bids, but accepted a little above GH¢6 billion.
Investors responded swiftly to the improved ratings by Fitch following a boost to Ghana's credit profile. The 91-day bill was the most subscribed bill as GH¢5.7 billion of the bids were tendered, representing 73% of the total bids; the uptake was GH¢4.3 billion. The 364-day bill also recorded bids of about GH¢1.4 billion, with bids accepted a little above GH¢1.1 billion. For the 182-day bill, GH¢655.12 million of the bids were tendered, and about GH¢ 571 million of the bids were accepted.
Interest rates were mixed on the yield curve. The yield on the 91-day bill fell by 4.0 basis points to 4.88%. The yield on the 182-day bill went up to 7.03% from 6.97% the previous week. The yield on the 364-day bill decreased by 6.0 basis points to 10.13%.
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Ghana's government offered treasury bills, and the auction results are now public. Investor activity and interest rates are in focus- but what does it all mean?
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