Treasury bill auction sees oversubscription as interest rate increases

The government saw a 5.63% over subscription in treasury bill sales, despite rising interest rates.

This is according to the Bank of Ghana’s auction results for last week.

The offer attracted bids amounting to GHS 3.20 billion out of the GHS 3.22 billion of the bids tendered.

This increase indicates strong investor demand but also comes with a growing concern over the rising cost of borrowing.

Government’s target for the auction was GHS 3.05 billion for the 91, 182 and 364-day treasury bills.

But at the end of the auction, GHS 3.22 billion was tendered out of which GHS 3.20 billion was accepted by the government.
The 91-day bill accounted for the highest subscription.

It accounted for approximately GHS 2.36 billion of bills tendered as all offers under that were accepted by the government.

The 182-day bill generated around GHS 717.51 million, of which GHS 701.67 million were accepted.

The bids for the 364-day bills totaled GHS 146.20 million.

The government accepted GHS 143.20 million dollars.

Meanwhile, interest rate saw a rise to 31.24 percent per annum.

 

Source: Citi Business News