After recording a shortfall two weeks ago, the government saw a marginal oversubscription last week in the treasury bill (T-bills) auction.
The bills, last two weeks, suffered a 21% undersubscription. A week later, the bills have seen a marginal uptick, recording an oversubscription of 14.14%.
The latest auction report published by the Bank of Ghana revealed that the government planned to borrow an amount of GH¢3 billion. At the end of the auction, total bids tendered by investors amounted to GH¢3.5 billion. This marks an excess of GH¢427 million, representing an oversubscription of 14.14%.
The auction report further reveals that the 91-day bill accumulated a total of GH¢2.7 billion, while the 182-day bill accumulated an amount of GH¢613 million. Also, the 364-day bill also gathered just GH¢250 million.
An analysis of the report reveals that out of the total GH¢3.5 billion submitted by investors, the government accepted a total of GH¢3.4 billion. This means that despite the target of GH¢3.0 billion, the government accepted an additional GH¢413 million, rejecting just GH¢13 million.
The moderate oversubscription came despite a fall in the interest rate across all the bills.
The interest rate of the 91-Day Bill decreased from 10.5304% to 10.4575%, while that of the 182-Day Bill also decreased from 12.4412% to 12.3610%. Moreover, the 364-Day bill also saw a decrease from 12.9574% to 12.8825%.
In the meantime, the government plans to raise an amount of GH¢5.6 billion in its upcoming auction this week. Will the picking demand last week continue this week, or will there be a reversal?
Market watchers are closely monitoring the market to see if the rebound will continue.
