Interest rates decline as demand surges in Ghana’s Treasury Bill auction

November 28, 2023
Treasury Bills

In a notable trend, interest rates in Ghana witnessed a third consecutive weekly decline, propelled by a significant surge in demand for Treasury bills on the money market.

Auction results released by the reveal a robust response from investors, with the government achieving nearly 40% oversubscription of the T-bills sale.

The interest rate on the 91-day Treasury bill experienced a marginal drop, decreasing from 29.74% to 29.49% compared to the previous week.

Similarly, the 182-day bill saw a decrease in its interest rate, down to 31.75% from the previous week's 31.87%.

The 364-day bill also recorded a decline in interest rates, settling at 33.23% from the previous 33.46%.

The government's T-bill sale proved to be successful, attracting a total of ¢5.008 billion, surpassing the targeted amount by ¢1.42 billion.

However, the government accepted ¢4.927 billion of the total bids tendered.

Breaking down the contributions, the 91-day T-bill accounted for ¢3.307 billion, representing a substantial 66.04% of the total transaction.

Following closely was the 364-day bill, with all ¢1.323 billion tendered by investors, predominantly banks, being accepted.

For the 182-day bill, ¢377.05 million were tendered, and ¢375.89 million were accepted, reflecting the continued high demand in the market.

The positive response to the T-bill auction not only signals increased investor confidence but also provides the government with a more favourable borrowing environment.

This trend suggests a potential easing of financial pressures as the government successfully navigates the money market.

SecurityBids Tendered (GH¢)Bids Accepted (GH¢)
91-Day Bill3.307 billion3.277 billion
182-Day Bill377.05 million375.89 million
364-Day Bill1.323 billion1.323 billion
   
Total5.008 billion4.927 billion
Target3.587 billion 

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