T-bills: Government rejects GH¢10.865bn, interest rates plummet to 24%
The government rejected GH¢10.865 billion of bids tendered for treasury bills as demand for the short-term instruments reached a record high.
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¢7.72 billion.
The 364-day bill received the highest bids estimated at GH¢8.11 billion, about 39.56% of the total bids. A little over GH¢3.9 billion were accepted.
For the 91-day bill, about GH¢7.38 billion, representing 36.02% of the total bids were tendered. A little above GH¢4.2 billion were accepted.
The 182-day bill also saw bids worth about GH¢5 billion tendered. About GH¢1.43 billion bids were accepted.
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%.
SECURITIESBIDS TENDERED (GH¢)BIDS ACCEPTED (GH¢)91 Day Bill 7.385bn4.223bn182 Day Bill5.003bn1.432bn364 Day Bill8.110bn3.968bn Total20.499bn9.634bnTarget8.068bn
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