Investor interest in T-bills soars, government secures ¢1.83bn

Investor interest in Treasury bills continue to soar, as they take advantage of rising interest in the Treasury market. Latest auctioning by the Bank of Ghana indicates that T-bills auction was oversubscribed for the 11th consecutive week by 56%, largely due to the high yields. Indeed, interest rates on the yield curve continued to rise as investors focused on the short-term securities in the primary market for re-pricing benefits. This has boosted liquidity in the market. However, the yields are still lower than the current inflation rate of 31.7%, indicating that the real return on Treasury securities for investors is still negative. Whilst the 91-day T-bill went for 28.6%, from the previous week’s 27.7%, that of the 6-month traded at 29.94%, compared with 29.2% the past week. The one-year bill however went for 29.5% lower than the six months bill. Meanwhile, government secured 1.83 billion from the sale of the short term securities, against a target of 1.16 billion. The majority of the amount raised was from the 91-day T-bills. 1.3 billion was mobilized from the three months bill. The 182-day and 364-day bills raised were ¢378.96 and ¢60.89 respectively.  
Securities Bids Tendered (GH¢) Bids Accepted (GH¢) Interest rate
91 Day Bill  1.391 billion  1.391 billion 28.6%
182 Day Bill  378.96 million  378.96 million 29.94%
364 Day Bill 60.89 million    56  million 29.5%
Total 1.831 billion 1.831 billion
Target 1.167 billion