The Bank of Ghana’s Treasury bills auction, target of GH¢2,632 million, received GH¢1,229 million bids more from investors last week.
Bids amounting to GHS 3,861 million, were accepted during this auction.
Among the various tenors, the 91-day Bill attracted the highest number of subscriptions, followed by the 182-Day Bill and the 364-Day Bill.
The successful bids after the auction amounted to GHS 2,837 million, GHS 839 million, and GHS 185 million for the 91–Day, 182-Day, and 364-Day tenors respectively.
The auction yields settled at averages of 29.03% for the 91-Day Bill and 31.51% for the 182-Day Bill with both declining by 16bps and 23bps respectively compared to the average rates for the previous auction.
The 364-Day bill also saw a yield decline of 26bps to settle at 32.08%.
Looking ahead to the next auction, the treasury aims to raise some GH¢3,058 million through the issuance of the 91,182, and 364 Day bills to cater for impending maturities.
Meanwhile, the Treasury is seeking to borrow some GH¢12.7 billion in treasury bills for January 2024 to finance maturing bills.
The expected GH¢12.7bn to be borrowed for this month is 1.2% lower than the GH¢12.8bn borrowed in December 2023.
Demand for treasury bills remained generally strong in December 2023.
Investors submitted total bids of GH¢16.3 billion across the T-bills, representing an average weekly bid size of GHS 4 billion and exceeding the total maturities of GH¢12.8 billion.
Already, the government has raised GHS 3.2 billion in the first auction of 2024 which is 15.24% more than the targeted amount of GH¢2.7bn.