Investor interest in Treasury bills continue to soar, as they take advantage of rising interest rates in the Treasury market.
Latest auctioning by the Bank of Ghana indicates that T-bills auction was oversubscribed for the 11th consecutive week by 56%, largely due to the high yields.
Indeed, interest rates on the yield curve continued to rise as investors focused on the short-term securities in the primary market for re-pricing benefits.
This has boosted liquidity in the market.
However, the yields are still lower than the current inflation rate of 31.7%, indicating that the real return on Treasury securities for investors is still negative.
Whilst the 91-day T-bill went for 28.6%, from the previous week’s 27.7%, that of the 6-month traded at 29.94%, compared with 29.2% the past week.
The one-year bill however went for 29.5% lower than the six months bill.
Meanwhile, government secured ¢1.83 billion from the sale of the short term securities, against a target of ¢1.16 billion.
The majority of the amount raised was from the 91-day T-bills. 1.3 billion was mobilized from the three months bill.
Ghana’s debt-to-Gross Domestic Product is expected to exceed 81% in 2022.
|Securities||Bids Tendered (GH¢)||Bids Accepted (GH¢)||Interest rate|
|91 Day Bill||1.391 billion||1.391 billion||28.6%|
|182 Day Bill||378.96 million||378.96 million||29.94%|
|364-Day Bill||60.89 million||56 million||29.5%|
|Total||1.831 billion||1.791 billion|
Source : myjoyonline.com