Government exceeded its Treasury bills sale target by 57%, only a week after it returned to the trajectory of under-subscription.
This probably signals good times for the economy in the coming months.
According to the latest auctioning by the Bank of Ghana, government mobilized a little above GH¢1.85 billion, against a target of GH¢1.17 billion.
Once again, the investors showed more interest in the 91-day Treasury bills, as they subscribed about GH¢1.5 billion of the short term securities. However the government accepted a slightly lower amount of about GH¢1.46 billion.
The investors, largely banks also bought about GH¢249 million of the one-year bill because of the higher interest yield.
This comes as a huge boost to the economy, following about six consecutive weeks of under-subscription of the short term securities from middle of March 2021 to somewhere in May 2021, due to liquidity squeeze on the interbank market.
However, this oversubscription was aided by a slight increase in the interest yield of the 3-months bill.
It went up by 0.02% to 12.77% to attract more investors.
Some analysts will hail this latest development as liquidity improves on the market.
Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
91 Day Bill | 1.500 billion | 1.468 billion | 12.77% |
182 Day Bill | 102.24 million | 99.85 million | 13.50% |
Total | 1.852 billion | 1.817 billion | |
Target | 1.177 billion |
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