Interest Rates Remain Unchanged As Government T-Bills Oversubscribed By 52%

Interest rates remained stable despite the government achieving more than 52% oversubscription of Treasury bills sale.

According to the latest auction results, government obtained ยข1.72 billion from the short-term securities, but accepted ยข1.71 billion of the bids tendered.

The target for the auction was ยข1.125 billion.

More than 85% of the bids tendered were from the 91-day T-bills as demand surged. Government accepted all the bids of about ยข1.47 billion.

Again, the government accepted all the bids of ยข198.49 million tendered by the investors, largely banks.

The yield on the 91-day and the 182-day T-bills dipped slightly though relatively same from the previous week. ย This is despite December 2022 inflation shooting up to 54.1%.

The yield on the 91-day T-bill was 35.46%, slightly lower than the 35.65% recorded the previous week. That of the 182-day bill was also virtually unchanged at 35.83%.

For the 364-day T-bill, the government secured ยข43.34 million but accepted ยข36.08 million of the bids tendered. The interest rate for the instrument was however 35.91%.

Analysts expect T-bill yields to decline as an expected International Monetary Fund support-programme in the first quarter of 2023 coupled with a stable outlook of the cedi may limit currency pass-through to inflation.

Securities Bids Tendered (GHยข) Bids Accepted (GHยข)
91-Day Bill 1.478 billion 1.478 billion
182-Day Bill 198.49 million 198.49 million
ย 364-Day Bill ย 43.34 ย 35.83
Total 1.722 billion 1.71 billion
Target 1.125 billion 1.125 billion

 

 

 

Source: Joy Business