T-bills auction: Government records 17% oversubscription; interest rates fall sharply

The treasury bills auction saw an oversubscription of 17.8%. This follows three weeks of undersubscription.

According to the Bank of Ghana, the Treasury received GH¢6.53 billion in bids. The target was GH¢5.54 billion, and GH¢5.97 billion was accepted.

Of the total bids, about GH¢4.95 billion came from the 91-day bill. This represents 75.82% of all bids received.

The uptake for the 91-day bill was GH¢4.58 billion. For the 182-day bill, GH¢890.81 million were tendered, and all bids were accepted.

Additionally, about GH¢689 million were tendered for the 364-day bill. The uptake for this was GH¢499.76 million.

Interest rates fell sharply across the yield curve this week. The yield on the 91-day bill dropped by 18 basis points to 14.92%.

The yield on the 182-day bill decreased to 15.55%, down from 15.68%.

Finally, interest on the 364-day bill fell by a significant 78 basis points to 16%.