T-Bill yields decline as government sees modest oversubscription

The government has once again exceeded its Treasury bill target, securing an additional GHS 514 million beyond its initial goal.

According to the latest auction results from the Bank of Ghana, the government aimed to raise GHS 8.26 billion but received total bids amounting to GHS 8.77 billion. This translates to an oversubscription rate of 6.22%.

Breaking down the auction results, all GHS 6.2 billion tendered for the 91-day Treasury bill was accepted. The 182-day bill attracted GHS 1.83 billion in bids, out of which GHS 1.80 billion was accepted. For the 364-day bill, investors submitted bids totaling GHS 1.2 billion, but only GHS 746 million was accepted.

Interest rates on Treasury bills continue to decline, ranging between 15% and 18%. The 91-day bill dropped by 186 basis points to 15.88%, while the 182-day bill fell by 204 basis points to 16.93%. Similarly, the 364-day bill declined by 101 basis points, settling at 17.98%.

Despite the downward trend in interest rates, the pace of decline appears to be slowing as the government focuses on reducing borrowing costs.

Looking ahead, the Treasury has set a target of GHS 6.14 billion for its next auction.

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