The results of the Government of Ghana Securities auction held on Friday, October 9, 2020, shows that the 91/182 Day Bill exceeded the target amount.
According to the results presented by the Bank of Ghana, the total amount of the 91/182 Day Bill summed up to GH¢919.34 million bids exceeding the stipulated target amount of GH¢876 million.
This means that the 91/182 Day Bill securities made extra sales of GH¢43.34 million, indicating an increase of about 4.95 percent.
The report further indicated that the 91 Day Bill made up more than half of the total bids tendered bringing in a total amount of GH¢854.10 million, representing approximately 93 percent.
The remaining 7 percent which constituted the 182 Day Bill recorded a minimal amount of GH¢65.24million.
The report also revealed that the total worth of bids tendered equaled the total amount of bids accepted.
In terms of rates, the range of bid rates was the same as the discount rates but lower than the interest rates. The 91-Day Bill logged in the highest range of bid rates, reaching between 13.5 and 13.65 percent per annum and a lower interest rate between 13.97 and 14.13 percent per annum. The 182 Day Bill also recorded a similar but marginally smaller range of bid rates and a higher interest rate. It had an interest rate extending from approximately 14.02 and 14.12 while its range of rates for bids lay between about 13.1 and 13.25.
The report went on to give a summary of the previous tender held for treasury bills. The results revealed that the 91,182- and 364-Day Treasury bills sold a total amount of GH¢821.21million bids falling below the tendered amount of GH¢831.21 million. Additionally, the 2-year treasury note recorded the highest amount of GH¢1525.03 million for bids tendered and sold.
Highlighting on the upcoming auction of Government of Ghana securities to be held on 12th October, the report indicated a total target amount of GH¢733 million for 91,182- and 364-Day treasury bills. Also, the report predicted a weighted average discount rate and interest rate per annum of 13.58 percent and 14.05 percent respectively for the 91 Day bill and then 13.18 percent and 14.11 percent for 182 Day bills correspondingly for the period starting from 12th to 16th of October 2020.
Finally, in the report, the Bank of Ghana stated that only Primary Dealers can have access to the Government of Ghana Securities Wholesale Auction and are supposed to act as market makers.
“The GOG Securities Wholesale Auction is opened to only Primary Dealers”.
“All Primary Dealers are obliged to act as market makers in GOG Securities”.
The statement of the Bank of Ghana further asserted that the general public who are interested in investing and thus will like to buy or sell Government of Ghana Securities could only do so through the Secondary Market and Depository Participants.
“The investing Public interested in purchasing or selling GOG Securities may do so on the Secondary Market (Ghana Fixed Income Market) through Depository Participants (including Primary Dealers)”.
