T-Bills Auction Sees 17% Oversubscription As Rates Fall Sharply

Following three consecutive weeks of undersubscription, the treasury bills auction recorded an oversubscription of 17.8%.

According to auction results released by the Bank of Ghana, total bids amounted to GH¢6.53 billion against a target of GH¢5.54 billion. The Bank accepted GH¢5.97 billion.

About GH¢4.95 billion came from the 91-day bill, representing 75.82% of the total bids. The uptake for this bill was GH¢4.58 billion.

For the 182-day bill, GH¢890.81 million were tendered, and all bids were accepted.

Approximately GH¢689 million were tendered for the 364-day bill, with an uptake of GH¢499.76 million.

Meanwhile, interest rates fell sharply across the yield curve.

The yield on the 91-day bill declined marginally by 18 basis points to 14.92%.

The yield on the 182-day bill also dropped to 15.55% from 15.68% the previous week.

The interest rate on the 364-day bill fell significantly by 78 basis points to 16%.