Investors favour 364-day treasury bill in latest debt auction

Investors showed strong preference for the 364-day Treasury bill in the latest government debt auction, with bids reaching about GH¢474 million. The government accepted GH¢224.35 million of the bids, with interest rates ranging from 8.8 per cent to 11.4 per cent. Accepted bids were concentrated between 8.9 per cent and 9.8 per cent.

The auction results published by the Bank of Ghana showed the 182-day Treasury bill as the second most sought-after instrument, attracting bids worth GH¢235.9 million, of which GH¢153.69 million was accepted.

The 182-day bill carried an interest rate of 6.12 per cent, a discount rate of 6.10 per cent and an effective interest rate of 6.30 per cent. The 91-day Treasury bill also attracted investor interest, although at a lower level than the longer-dated instruments.

Overall, investors submitted bids totalling about GH¢2.9 billion, while the government accepted approximately GH¢1.7 billion. The 364-day bill recorded the highest bid value among the instruments reported, followed by the 182-day bill, while accepted bids for both instruments were below the amounts offered.

GNA

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