T-Bills auction: sales undersubscribed by 23%; interest rates remain stable

For the first time in four weeks, government Treasury bills sale was undersubscribed by 23.83% to the tune of ¢2.44 billion.

This means demand for the short-term securities dipped, following four consecutive weeks of soaring investor interest.

This could be attributed to the significant fall in interest rates despite the investors largely banks having limited opportunity to invest in the financial market. Some analysts believe the investors have shifted their attention to the Bank of Ghana bills which is offering a rate of 28%.

According to data from the Bank of Ghana, the government secured about ¢1.41 billion from the 91-day bill, whilst about ¢553 million and ¢468 million were gotten from the 182-day and one-year T-bills.

Meanwhile, interest rates remained same despite a significant fall in the past three weeks.

The yield on the 91-day went for 18.87%, from the previous week’s 18.52%.

The yield on the 6-months bill was however estimated at 21.43% compared with 21.27% a week ago.

Securities	Bids Tendered (GH¢)	Bids Accepted (GH¢)
91-day	1.419 billion	1.419 billion
182-day	553.42 million	553.42 million
364-day	468.89 million	468.89 million

Total	2.441 billion
Targeted	3.206 billion

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