T-Bills Archives - Page 3 of 6

04 Sep

T-bills Auction: Interest Rates Hit 31.65%; Government Achieves 15% Oversubscription

wontumionlineBusiness182-day, 364-day, 91-day, Interest rates, T-Bills

Interest rates continued to surge on the money market, signaling an increasing cost of domestic debt. According to the latest results by the Bank of Ghana, interest rates went up across the yield curve. This is coming after the government forced rates down in March 2023, following the completion of the first phase of the Domestic Debt Exchange Programme. The yield on the 364-day bill went up by 0.41% to 31.65%. Again, the rate of the highly patronized 91-day bill shot up to 27.36%, from 27.02%. Similarly, the rate on the 182-day bill increased from a marginal 0.10% to 28.71%.…

30 Aug

T-bills Auction: Government To Borrow ¢3.06 Billion On September 1, 2023

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills

The government will borrow ¢3.06 billion across the 91-day to the 364-day treasury bills on Friday, September 1, 2023. The proceeds will be used to roll over maturing bills worth ¢2.87 billion. Notwithstanding the favorable liquidity levels, analysts anticipate an uptick in T-bill yields as the steady increase in Opening Market Operations (OMO) bill yields and interbank interest rate pose further upside pressures. The government surpassed its auction target last week, as the market continued to experience sufficient liquidity. It accepted total bids worth ¢3.21 billion out of ¢3.23 billion bids tendered. The auction results exceeded the maturities by 16%.…

07 Aug

T-bills Auction: Government Borrowed ¢9.14Bn In July 2023

wontumionlineBusiness182-day, 364-day, 91-day, T-Bills

The government borrowed ¢9.14 billion via treasury bills in July 2023. This is 29.11% lower compared to June 2023. The overall auctions churned bid/cover, target coverage and maturity coverage ratios of 1.01, 1.10 and 0.95 respectively. On a monthly basis, the 91-day and 182-day yields surged to 25.24% (129 basis points) and 27.15% (135bps), respectively, while the 364-day closed at 30.31% (105bps). Analysts believe yields will record further increase in August 2023 as investor’s price in near-term inflation risk, with government reliance on money market funds. “Given that Treasury bills remain the only domestic borrowing instrument available to the authorities…

31 Jul

T-bills Auction: Government Records Marginal Oversubscription; Interest Rates Hit 30.30%

wontumionlineBusiness364-day, 91-day, T-Bills

Government recorded a marginal oversubscription of treasury bills auction, as interest rates continued its upward trend on the money market. According to the auction result by the Bank of Ghana, the government got about ¢2.34 billion. The target for this auction was about ¢2.28 billion. ¢1.493 billion cedis were bids tendered for the 91-day bill. All the bids were subsequently accepted. Also, the bids for the 182-day T-bills were estimated at about ¢503.58 million. Similarly, all the bids were accepted. For the 364-day bill, about ¢345.14 million were gotten from the auction. Meanwhile, interest rates on the 364-day bill went…

26 Jun

T-bills: Government Records Marginal Oversubscription; But Interest Rates Hit 29.2%

wontumionlineBusiness182-day, 364-day, 91-day, BoG, T-Bills

Government’s Treasury bills sale were marginally oversubscribed as interest rates hit 29.2%. According to the results from the Bank of Ghana, the government received bids worth ¢2.29 billion, about 4.04% oversubscription. The government had in March 2023 forced interest rates to go down to 18.0% in March 2023, but the rates have been surging since then, raising some concerns about the government’s domestic debt restructuring programme. All the short-term financial instruments have gone up by more than 4.0% since they went down sharply from the high of 35% some three months ago. According to this auction result, the 91-day T-bill…

12 Jun

T-bills Auction: Interest Rates Rise To 27.8%; Government Records 6.4% Oversubscription Of Target

wontumionlineBusinessBoG, Interest rates, T-Bills

Government recorded about 6.4% oversubscription of its treasury bills target of ¢2.63 billion but an increasing cost. According to figures from the Bank of Ghana, interest rates surged for the eighth-week running, raising concerns about the government’s debt management strategy, aimed at cutting Ghana’s debt. The government has been borrowing heavily on the money market since the beginning of 2023 but at a higher cost. This is because it is the only source of borrowing. The rising interest rates are expected to keep high the domestic interest payments of the government. The figures from the Bank of Ghana indicate that…

08 Jun

Government Secures GH¢11.26 Billion From T-Bills In May 2023

wontumionlineBusinessT-Bills

The total subscriptions from treasury bills in May 2023 was GH¢11.26 billion. This was higher than the GH¢8.25 billion that was borrowed in April 2023, representing a 36.57% increase. The subscription fell short of the set target of GH¢11.33 billion Reports have noted that the subscriptions were almost up to the cost of matured bills worth GH¢11.42. However, the auction results for the treasury bill auction held on June 2, 2023, have shown that the government secured GH¢2.40 billion. This indicated an oversubscription of GH¢324.01 million from the target of GH¢2.08 billion. This will be the first time in four…

05 Jun

T-bills Auction: Government Records 15% Oversubscription, But At Higher Cost Of 23.9%

wontumionlineBusinessbank of ghana, Subscription, T-Bills

The government overturned its recent under-subscription of treasury bills sales to record about 15% oversubscription of its targeted amount of ¢2.08 billion. However, that was primarily due to a reduction in the targeted amount. According to figures from the Bank of Ghana, the government got about ¢2.4 billion from the T-bills auction across the 91-day and 182-day. Once again, the chunk of the bids came from the 91-day bill. A little over ¢1.59 billion were tendered by the investors for the 3-month financial instrument. The government accepted over 99% of the bids. For the 182-day T-bill, about ¢816 million were…

29 May

T-bills Auction: Government Fails To Meet Target Again; Interest Rates Still Surging

wontumionlineBusiness182-day bill, 364-day bill, 91-day bill, T-Bills, treasury market

The government’s heavy borrowing on the treasury market triggered another marginal under-subscription of Treasury bills sales by about 7.21%, as interest rates continued to surge. This is the third week running that the government has failed to meet its T-bills target because of the heavy borrowing on the financial market. The government was looking to rope in ¢3.43 billion cedis, but got about ¢3.18 billion. According to the auction results, it received bids of about ¢2.03 billion from investors for the 91-day T-bill, which it accepted about 99% of the bids. It also accepted about 99% of the bids tendered…

09 May

T-bills Auction: Government To Borrow ¢3.33Bn This Week

wontumionlineBusinessGovernment, T-Bills

The government will borrow ¢3.33 billion from the treasury market on Friday May 12, 2023, to partly refinance maturities worth ¢2.31 billion. Joy Business understands that part of the ¢3.33 billion will be used to settle coupon payments of the pension bondholders. The amount which will be the biggest so far this year will be issued via the 91-day, 182-day and 364-day Treasury bills. Analysts perceive investors bidding higher yields on liquidity squeeze, as inflation data for April 2023 is expected to be release on May 10, 2023. But the $750 million loans approved by the Parliament of Ghana last…