Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd
The Government of Ghana recorded 77% oversubscription of the treasury bills auction, as the yield on the one-year bill hit 12.99%.
According to the auction results by the Bank of Ghana, most of the investors bought the 364-day bill because of the attractive interest rate.
However, the government will have to pay more to service the bill at maturity. The government received GH¢10.03 billion of the bids from the investors.
However, it accepted a little above GH¢7 billion. The 364-day bill was once again the most subscribed bill as GH¢5.65 billion of the bids were tendered, representing 56.3% of the total bids.
The uptake was, however, GH¢4.5 billion. The 182-day bill received bids of GH¢1.3 billion. A little above GH¢1.0 billion was accepted. For the 91-day bill, GH¢2.98 billion of the bids were tendered.
A little above GH¢1.79 billion of the bids were accepted.
Meanwhile, interest rates were mixed on the yield curve. The yield on the 91-day bill dropped by 10 basis points to 5.86%.
That of the 182-day bill remained unchanged at 7.78% from the previous week. The yield on the 364-day, however, surged by 70 basis points to 12.99%.
Source: newsthemegh.com