The 91-day bill dominated treasury bill sales for the week ending October 16, 2020 by recording the highest amount of sales.
According to the results presented by the Bank of Ghana, out of a total amount of GH¢819.62 million Treasury bill bids tendered, the 91-Day Bill amounted to GH¢619.54 million.
This means that the 91-Day Bill alone made up more than half of the total Treasury Bill bids tendered, bringing in approximately 76 percent.
Out of the 24 percent remaining, 17 percent constituted the 364-Day Bill, representing a total of GH¢144.45 million, and then 7 percent the 182 Day Bill recording a minimal amount of GH¢55.63 million.
The report, however, indicated that except for the 364-Day Bill, all total amount of bids tendered equaled those accepted. The total amount of 91-Day, 182-Day, and 364-Day T-Bill bids accepted summed up to GH¢793.9 million, exceeding the stipulated target amount of GH¢733 million.
This indicates that the 91-Day, 182-Day, and 364-Day T-Bill Bill securities made extra sales of GH¢60.9 million, representing an increase of about 7.67 percent.
In terms of rates, the range of bid rates was the same as the discount rates but lower than the interest rates. The 364-Day Bill logged in the highest bid rates as well as interest rates, reaching between 14.35 and 14.6 percent per annum for bid rates and then from 16.75 to 17.03 percent per annum for interest rates. The bid rates for the 91-Day Bill reached between 13.5 and 13.65 percent per annum, and then from 13.97 to 14.13 percent per annum for interest rates. The 182 Day Bill also came in with 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 14.12 percent per annum, while its range of rates for bids lay between about 13.1 and 13.25 percent per annum.
Besides the Treasury bill bids tendered, a 5-year fixed-rate bond was also tendered amounting to
GH¢ 616.3 million with the same bid and interest rates ranging from 19.65 to 19.85 percent annum.
The report went on to give a summary of the previous tender held for treasury bills. The results revealed that the 91-Day and 182-Day Treasury bills sold a total amount of GH¢919.35 million bids equal to the tendered amount but exceeding the stipulated target of GH¢876 million.
Highlighting on the upcoming auction of Government of Ghana securities to be held on 19th October, the report indicated a total target amount of GH¢1027 million for 91-Day and 182-Day Treasury bills. Also, the report predicted a weighted average discount rate and interest rate per annum of 13.56 percent and 14.04 percent respectively for the 91 Day bill, and then 13.16 percent and 14.09 percent for 182 Day bills correspondingly for the period starting from 19th -23rd 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 the 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)”.
