Treasury Bills Archives - Wontumi Online

26 Aug

T-Bills Auction: Government Misses Target Again, But Interest Rates Ease

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For the seventh consecutive week, the government missed its auction target for treasury bills. According to the auction results by the Bank of Ghana, the government missed its target by a marginal 1.66 percent. The government got GH¢5.203 billion from a target of GH¢ 5.319 billion. All the bids tendered for the short-term instruments were accepted. GH¢3.725 billion, representing 71.23% were tendered for the 91-day bill. The uptake for the 182-day T-bill was however GH¢1.251 billion. It represented about 23.93% of the total bids. For the 364-day bill, GH¢252.74 million were tendered. Meanwhile, interest rates eased across the yield curve…

03 Jun

T-bills Auction: Government Records 29.71% Oversubscription; Interest Rates Dip Slightly

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The government recorded a 29.71% oversubscription of the treasury bills auction a week after it failed to meet its target. According to the auction results by the Bank of Ghana, the government got GH¢3.52 billion from the sale of the short-term instruments. About GH¢2.715 billion, representing 77.02% came from the 91-day T-bill. The uptake was however GH¢2.710 billion. For the 182-day bill, GH¢608.41 million were tendered. All the bids were accepted. Similarly, GH¢201.49 million were received for the 364-day bill. Again, all the bids were accepted. Meanwhile, interest rates returned to their downward trajectory. The yield on the 91-day bill…

12 Feb

T-bills Auction: Government Raises GH¢6.86Bn; Interest Rates Fall For 6th Consecutive Week

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Government raised GH¢6.86 billion via treasury bills, the biggest so far this year. According to the latest T-bills auction by the Bank of Ghana, the government recorded 51.8% oversubscription of the T-bills sale. The target for the auction was GH¢4.58 billion. About GH¢3.04 billion, approximately 43.7% of the total subscription came from the 91-day bill. The uptake was GH¢2.93 billion. The 364-day bill followed with GH¢2.28 billion of the bids tendered. All of the bids were however accepted. For the 182-day bill, GH¢1.62 billion were tendered in which all the bids were taken. Meanwhile, interest rates fell again for the…

16 Oct

Interest Rates Still Remain High As Treasury Bills Get Oversubscribed In Latest Auction

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Last week, interest rates on treasury bills increased from 32.8% to 33% as the government’s target was slightly undersubscribed. In this week’s auction, interest rates have inched further to 33.2% for the 364-day bills. The interest rates for the 91-day and 182-day bills currently stand at 29.48% and 31.42%. This, will however, be the 33rd consecutive time this year that interest rates have increased. Despite the high rates, the government has witnessed oversubscriptions recently except in a few instances where it saw slight undersubscriptions. Even though there are concerns about the government’s ability to be able to afford maturities the…

11 Sep

T-bills Auction: Government Achieves 13.21% Oversubscription; Interest Rates Reach Nearly 32%

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Government exceeded its treasury bills target by over 13 percent to the tune of ¢2.94 billion, but interest rates continued to surge disturbingly. According to the latest auction by the Bank of Ghana, interest rates reached almost 32%. The target for this auction was ¢2.601 billion, but the bids tendered were ¢2.944 billion. About ¢2.907 billion were accepted. Majority of the bids came from the 91-day bill in which about ¢2.206 billion were tendered. However, the government accepted ¢2.202 billion. For the 182-day bill, a little above ¢322 million were offered, but the government accepted ¢289.19 million. With regard to…

05 Sep

T-Bills Oversubscription May Be An Indication Of Growing Confidence In The Market – Analyst

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A financial analyst, Courage Boti, has explained that the increasing subscriptions being witnessed on the primary markets and secondary markets may just be an indication of growing confidence in the economy. According to him, the oversubscription of treasury bills witnessed in the last few weeks may continue. He explained that this is due to the successful completion of the second round of the government’s debt exchange programme including pension funds, dollar-denominated bonds, and cocoa bills. Even though the government’s recent treasury bill target seemed ambitious due to the high interest rates currently, it has witnessed oversubscriptions. Courage Boti was quoted…

18 Jul

T-Bill Auction Gets 19.58% Oversubscription, Interest Rates At 26.4%

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Despite increasing interest rates, the government’s latest treasury bills auction saw an oversubscription of 19.58%. The auction raked in a total of GH¢2.13 billion from the 91-day and the 182-day bills. The results from the Bank of Ghana showed that all the bills tendered during the auction were accepted. Interest rates have risen to 24.68% for the 91-day bill and 26.4% for the 182-day bill. The target for the auction was GH¢1.778 billion. Meanwhile, no bids were tendered for the 364-day bills. The 91-day bill accepted bids worth GH¢1.81 billion whiles the 182-day bill accepted GH¢313.59 million. However, the government…

10 Jul

Treasury Exceeds Financing Target In H1 2023

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The Treasury successfully issued new short-term debts amounting to GH¢13.64billion in first-half 2023 (H1 2023), while GH¢30.55billion was utilised to refinance maturing debts. More importantly, it exceeded its financing target for H1 2023 by approximately GH¢12.39billion – resulting in a total issuance of GH¢44.19 billion during the period, out of the GH¢47.30billion tendered by investors. The Treasury adopted a frontloading strategy for its issuance requirement in H1, primarily in the money market. This approach was driven by limited investment options available to investors, particularly in Q1. Consequently, there was higher demand for short-term securities during this period. Analysis by the…

03 Jul

T-Bills: Government Misses Target By Over GH¢500 Million As Interest Rates Rise

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The results from the government’s latest treasury bill auction have shown that the government failed to meet its auction target by GH¢519.76 million. According to the results, the government gained GH¢2.39 billion from the auction. This was 17% away from the target of GH¢2.93 billion. According to the Bank of Ghana includes the target includes a sell buy-back of GH¢1.01 billion which matures and will be rolled over on July 6, 2023. The subscriptions for the auction held on June 30 were from only the 91-day and 182-day bills. Meanwhile, interest rates have been rising in the past few weeks.…

12 Jun

Pressure Mounts As Demand For T-Bills Falls Short Of Issuance Target

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For the first time this year the demand for Treasury bills (T-bills) on the primary market has eased, falling short of government’s issuance target in May 2023. Investors showed reduced momentum in their demand for 91- to 364-day bills, raising concerns about the Treasury’s ability to meet its debt obligations amid tighter liquidity conditions in the market. During May 2023, investors tendered GH¢14.04billion across the 91- to 364-day bills, reflecting a 4.2 percent under-subscription compared to the Treasury’s target of GH¢14.66billion. However, the Treasury was able to issue the amount tendered. The waning demand can be attributed to lingering effects…