Primary dealers loan GHS 5.4bn to Govt; oversubscribe bills by 116.9%


Government’s treasury bill auction target of GHS 2,532 million received GHS 2,962 million bids more from the 17 licensed primary dealers authorized to participate in the wholesale auction of the Government’s short-term debt securities by the Central Bank.

Total bids made by primary dealers amounted to GHS 5,605 million of which GHS 5,494 million was accepted by the Treasury.

The GHS 5,494 million accepted bids was detailed in the BoG auction results following the Central Bank’s post-auction meeting with the Central Securities Depository (CSD) and the Finance Ministry.

The GHS 5,494 million bids accepted by the Treasury imply a 116.9% oversubscription rate above the initial GHS 2,532 million target.

This is despite the reduction in yields across the three tenors – 91–Day, 182-Day, and 364-Day.

Among the various tenors, the 91-day Bill attracted the highest number of subscriptions, followed by the 182-Day Bill and the 364-Day Bill. 

The successful bids after the auction amounted to GHS 2,729 million, GHS 1,531 million, and GHS 1,234 million for the 91–Day, 182-Day, and 364-Day tenors respectively.

The auction yields settled at averages of 28.59% for the 91-Day Bill and 31.09% for the 182-Day Bill with both declining by 60bps and 65bps respectively compared to the average rates for the previous auction.

The 364-Day bill also saw a yield decline of 55bps to settle at 31.79%.

Looking ahead to the next auction, the treasury aims to raise some GHS 2,861 million through the issuance of the 91,182, and 364 Day bills to cater for impending maturities.

Source: Norvanreports

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