The Government of Ghana’s T-bill offer across 91-day to 364-day bills was oversubscribed by approximately 15.3% relative to the target size of GH¢3.065 million at last week’s auction.
The offer attracted total bids estimated at GH¢3.54 billion, with the Treasury accepting 99.21% of the bids valued at GH¢3.51 billion.
According to figures from the Bank of Ghana, a chunk of the bids came in from the 91-Day bill.
The investors tendered GH¢2.53 billion for the 3-month financial instrument.
According to the result of the Bank of Ghana, the aggregate bids from investors amounted to GH¢3.54 billion against the government’s target issuance size of GH¢3.07 billion, resulting in 15.3 percent oversubscription.
The 91-day attracted the most demand, recording total bids worth GH¢2.53 billion, with the government accepting 99.96% of the amount tendered for this three-month instrument.
The government also received and accepted total bids worth GH¢261.69 million from investors for the 182–day bill.
However, for the 364-day bill, the government accepted GH¢721.03 (96.4%) out of the GH¢741.81 million worth of bids received for this 1-year tenor.
In all, the total amount sold at this auction exceeded the auction target by 14%, and the T-bill refinancing obligation due today, August 14, 2022, by 22%.
Despite the oversubscription, interest rates continued higher on the money market.
The 91-day T-bill increased by 52bps w/w to 26.09% (from 25.57% last at the preceding auction), with the 182-day and the 364-day T-bills also increasing by 32bps w/w and 21bps w/w, to 27.28% and 30.49%, respectively, at the auction.
Later this week, the government will seek to raise GH¢3.97 billion from the 91, 182, and 364-day bills at the next auction.
This target exceeds the T-bill maturity obligation for the week by 61.8% as the government may be seeking to raise new money to finance its programmes and projects.
With yields already ascending and inflation still a major concern; the significantly higher target size at the next auction could nudge the clearing yields even higher.
