T-bills auction: Government records 253% oversubscription; interest rates fall to 8.6%.

Investor interest in government securities shot up further, as the government exceeded its treasury bills target once again by 253%.

According to auction results by the Bank of Ghana, the government received bids worth over GH¢22.6 billion.

According to the auction results by the Bank of Ghana, the government rejected about GH¢13 billion of the bids, but accepted GH¢8.9 billion.

The majority of the bids yet again came from the 364-day bill, with an estimated GH¢7.7 billion tendered. This represented 34.2% of the total bids.

The uptake was, however, GH¢3.4 billion. 

For the 91-day bill, GH¢7.6 billion of the bids were tendered. The bids accepted were to the tune of GH¢3.4 billion.

Similarly, GH¢7.2 billion of the bids were tendered for the 182-day bill. A little over GH¢3 billion of the bids were accepted.

Meanwhile, interest rates fell sharply across the yield curve, reducing the government cost of servicing the debt.

The yield on the 91-day bill dropped by 136 basis points to 8.60%.

That of the 182-day bill also declined to 10.67%, from the previous 11.81%.

Again, the yield on the 364-day bill eased by 100 basis points to 11.06%.