T-bills auction: Government records 19.75% oversubscription; interest rates near 30%

The government has recorded a 19.75% oversubscription in treasury bills just a week after President Mahama’s re-election, signaling strong investor confidence following the successful general elections.

Data from the Bank of Ghana’s latest T-bill auction revealed heightened demand for short-term instruments, with total bids amounting to GH¢8.20 billion. The government accepted all bids submitted.

The 91-day bill was the most sought-after, raising GH¢6.740 billion, which accounted for 82.1% of the total bids. The 182-day bill garnered GH¢951.67 million, while the 364-day bill secured GH¢508.15 million.

Interest rates on treasury bills continued to edge closer to the 30% threshold. The yield on the 91-day bill rose by 17 basis points to 27.77%, while the 182-day bill yield increased to 28.49%, up from 28.32% the previous week. The 364-day bill also saw a modest rise, with its yield climbing by 3.0 basis points to 29.94%.

This strong performance highlights the growing confidence of investors in Ghana’s short-term debt instruments, buoyed by the stability brought by the election outcome.