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 | |
| Target | 823 million |
Source : myjoyonline.com
