Treasury bill bids pick up eventually at the latest Government of Ghana (GOG) Securities Auction after government falling short of its target for two consecutive weeks running.
All T-Bill bids tendered by banks got accepted. The bids which totaled approximately GH¢1179.4 million was made up of the 91-day bill and 182- day bill.
This exceeded the stipulated target amount of GH¢1,012 million implying that the 91/182 T-Bill securities were oversubscribed by 16.5 percent making extra sales of GH¢167.4 million.
Also, the results presented by the Bank of Ghana show that this is contrary to the immediate past two auctions held, where government fell short of its target by 21.5 percent and 7 percent losing approximately GH¢211.29 million and GH¢ 68.69 million, respectively.
Detailing the Treasury bill sales made, the Bank of Ghana intimated that out of a total amount of GH¢1179.4 million Treasury bill bids tendered the 91-Day Bill dominated the sales amounting to GH¢1,083.44 million
Therefore, the 91-Day Bill only comprised more than half of the total Treasury bill bids tendered, bringing in approximately 92percent with the 8 percent remaining, constituting the 182 Day Bill making a minimal amount of GH¢95.96 million, the Bank of Ghana pronounced.
Although there have been slight fluctuations in the range of rates, the Bank of Ghana further asserts that they continue to remain fairly stable with the range of bid rates and the discount rates lingering around the same average but are lower than the interest rates. The bid rates for the 91-Day Bill reached between 13.55 and 13.65 percent per annum, and then from 14.03 to 14.13 percent per annum for interest rates. The 182 Day Bill also shows a similar but a marginally smaller range of bid rates and a higher interest rate than the 91 Day-Bill. It had an interest rate extending from approximately 14.02 and 14.19 percent per annum, while its range of rates for bids lay between about 13.1 and 13.25 percent per annum.
Highlighting on the upcoming auction of Government of Ghana securities to be held, the report indicates a total target amount of GH¢925 million for 91/182 Treasury bills. Also, the report predicted a weighted average discount rate and interest rate per annum of 13.59 percent and 14.07 percent respectively for the 91 Day bill, 13.2 percent and 14.13 percent for 182 Day bills correspondingly, for the period starting from today, 7thDecember – 11th December 2020.
The Bank of Ghana has alerted that “The GOG Securities Wholesale Auction is opened to only Primary Dealers” who are obliged to act as “market makers in GOG Securities”.
Finally, the Bank of Ghana cautions that “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)”.
