The government in the week ending November 6 accepted all bids from banks for the sale of T-Bills.
The bids which totaled about GH¢1.16 billion was made up of the 91-day bill, 182- day bill, and the 364- day bills.
This exceeded the stipulated target amount of about GH¢1.04 billion implying that the 91/182/364 T-Bill securities made extra sales of GH¢112.92 million, representing an increase of approximately 11 percent, but fell short of last week’s figure by GH¢16.14 million.
Detailing the Treasury Bill sales made, the Bank of Ghana intimated that out of a total amount of GH¢1155.92 million Treasury bill bids tendered, the 91-Day Bill dominated the sales amounting to GH¢745.05 million.
The 91-Day Bill alone made up more than half of the total Treasury Bill bids tendered, bringing in approximately 65 percent, the Bank of Ghana added.
Out of the 35 percent remaining, 23 percent constituted the 364-Day Bill, representing a total of GH¢268.09 million, and then 12 percent the 182 Day Bill recording a minimal amount of GH¢142.78 million, the Bank of Ghana pronounced.
The Bank of Ghana further asserted that, 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 14.4 and 14.6 percent per annum for bid rates and then from 16.8 to 17.1 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 recorded 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.
These range of rates have remained fairly stable throughout the month of October and remains so even into the first week of November, the Bank of Ghana mentioned.
Aside the Treasury Bill sales, a 2-year Treasury Note worth GH¢768.08 million was also tendered with an interest rate same as its bid rate, ranging from 18.25 percent to 18.5 percent.
A summary of the previous tender held for treasury bills revealed that the 91/182/364 Treasury bills sold a total amount of GH¢ 838.06 million, which is the same as the tendered amount but exceeding the stipulated target of GH¢709 million by 18 percent, the Bank of Ghana opined.
Highlighting on the upcoming auction of Government of Ghana securities to be held on 9th November, the report indicates a total target amount of GH¢783 million for 91-Day and 182-Day Treasury bills. Also, the report predicted a weighted average discount rate and interest rate per annum of 13.59 percent and 14.06 percent respectively for the 91 Day bill, 13.2 percent and 14.1 percent for 182 Day bills correspondingly, and then 14.51 percent and 16.97 percent for the 364 Day bill respectively for the period starting from 9th – 13th November 2020.
Finally, the Bank of Ghana reports 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 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)”.
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