T-bills auction: Government records 15% oversubscription, but at higher cost
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 tendered by the investors, largely the banks. All the bids were subsequently accepted.
Meanwhile, interest rates continued to surge on the money market.
The 91-day T-bill shot up by 0.36% to 21.15%, whilst the 182-day T-bill also went up to 23.93%, from 23.62% the previous week.
Again, analysts and market watchers are worried about the rising cost of T-bills, as government still restructure its debt.
| Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) |
| 91 Day Bill | 1.593 billion | 1.593 billion |
| 182 Day Bill | 816.42 million | 816.42 million |
| Total | 2.409 billion | |
| Target | 2.082 billion |
Source: Ghana News
