T-Bills oversubscribed by nearly GH¢480m

The Bank of Ghana (BoG) recently auctioned treasury bills with maturities of 91, 182, and 364 days on behalf of the government.

The auction was a success, with GH¢3,746 million raised from investors, which exceeded the target of GH¢3,266 million.

The government accepted all bids tendered for the short-term debt securities, with the 91-day and 182-day bills receiving GH¢2,452 million and GH¢568 million in bids respectively.

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The 364-day bill received GH¢726 million in bids, with the government accepting all of them.

The oversubscription of the short-term debt securities was due to high-interest rates and near-positive returns on the debt instruments for investors.

Returns on the short-term debt instruments particularly the 364-day bill with an interest rate of 33.4% have neared positive returns (1.8 percentage points away from reverting to the path of positive returns) given the dip in headline inflation from 38.1% in September to 35.2% in November 2023.

Interest rates on the 91, 182, and 364-day T-Bills as of the last auction were 29.7%, 31.8%, and 33.4% respectively.

Effectively, interest rates on the 91, 182, and 364-day T-Bills on a week-on-week basis remained largely unchanged with only the 91-day bill declining by 0.1%.

Meanwhile, in the upcoming issuance of the 91-day, 182-day, and 364-day treasury bills on November 24, 2023, the Government will be seeking to secure some GH¢3,587m in fresh funding to meet its short-term financing needs.