The government has rejected GH¢10.865 billion of bids tendered for treasury bills as demand for the short-term instruments reached a record high.
This comes as the Government once again exceeded its Treasury bill target, surpassing it by GH¢1.9 billion. The Treasury registered a 140.5% oversubscription to the tune of GH¢20.49 billion. It accepted GH¢9.634 billion, higher than the target of GH¢7.73 billion, exceeding the auction target by 165%.
For the 91-day and 182-day T-Bills, bids amounted to GH¢7.38 billion and GH¢5 billion, with the Government accepting GH¢4.23 billion and GH¢1.43 billion, respectively. Bids for the 364-day bill reached GH¢8.11 billion, of which GH¢3.96 billion was accepted.
Despite the strong demand, interest rates on the short-term instruments declined. The 91-day and 182-day T-Bill rates fell to 24.47% and 25.38%, down from 26.85% and 27.80%, respectively. The 364-day bill also saw a drop in its interest rate to 27.29% from 29.07%.
Looking ahead, the Government aims to raise an additional GHS 6.49 billion in debt on Friday, February 28, 2025.
Meanwhile, interest rates took a nosedive, reducing the government’s cost of borrowing.
The yield on the 91-day bill went down by 238 basis points to 24.47%. That of the 182-day bill also declined to 25.38% from the previous 27.80%. Similarly, the 364-day bill was reduced by 178 basis points to 27.29%.
A Business Desk Report