As predicted, the government recorded a remarkable 264% oversubscription of treasury bills, a day after the finance minister, Dr. Cassiel Ato Forson, presented the Mid-Year Budget Review to Parliament.
According to data from the Bank of Ghana, demand for the short-term instruments reached its all-time high as investors submitted bids worth GH¢28.096 billion.
The government accepted GH¢15.160 billion of the bids as against a target of GH¢7.701 billion.
About GH¢13 billion of the bids tendered, representing about 47.8% came from the 91-day bill. The uptake was GH¢5.078 billion.
A little over GH¢8.719 billion was also tendered for the 182-day bill. However, GH¢5.723 billion was accepted.
For the 364-day bill, GH¢5.941 billion was tendered. About GH¢4.3 billion was accepted.
Meanwhile, interest rates tumbled significantly across the yield curve.
The yield on the 91-day bill went down by 289 basis points to 10.83%.
That of the 182-day bill fell to 13.22% from 14.61% a year ago.
The yield on the 364-day bill also declined by 43 basis points to 14.30%.
Many market watchers expect the government’s interest payments to fall significantly due to the decrease in yields.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 13.435bn | 5.078bn |
| 182 Day Bill | 8.719bn | 5.723bn |
| 364 Day Bill | 5.914bn | 4.358bn |
| Total | 28.096bn | 15.106bn |
| Target | 7.07bn |
