T-bills: Gov’t records 23% oversubscription, but interest rates continue to rise

The government recorded a 23.4% oversubscription of the treasury bills auction, as investors continue to demand more compensation.

According to auction results by the Bank of Ghana, investors bought T-bills worth a little over GH¢4 billion, as against a target of GH¢3.37 billion.

The government, however, accepted about GH¢3.1 billion of the bids.

The 364-day bill was once again the most subscribed bill as GH¢1.85 billion of the bids were tendered, representing 44.5% of the total bids.

The uptake was, however, GH¢1.09 billion.

The 182-day bill received bids of GH¢618.90 million. A little above GH¢435 million was accepted.

For the 91-day bill, GH¢1.68 billion of the bids were tendered. A little above GH¢1.63 billion of the bids were accepted.

Meanwhile, interest rates continued to rise on the yield curve.

The yield on the 91-day bill went up by 14 basis points to 5.87%.

That of the 182-day bill also increased to 7.78% from the previous week’s 7.69%.

Similarly, the yield on the 364-day surged by 10 basis points to 12.92%.