Government Treasury bills sale for the third week was oversubscribed, but in an unusual manner, since the sale was done a day after the issuance of the 6-year government bond.
In previous issuance prior to this auctioning, the sale was undersubscribed anytime government issued a bond or debt security.
The government was looking to mobilize GH¢1.235 billion for the short term securities, but got GH¢1.619 billion. This means it secured an extra GH¢384.67 million from the auctioning.
That is important because it is coming on the back of the sale of the 6-year government bond a day before, which was oversubscribed by more than 250%.
Government is expected to be pleased because it is securing enough funds at this crucial time to repay maturing loans and finance its business.
For the 91-day T-Bill, the government mobilized GH¢1,049 billion at the same interest rate charged last week. It also secured about GHc215.44 million for the 6-months bill, but GH355.11 million for the one-year bill.
The rising sale of Treasury bill signals continuous growing investor interest in the country, about a month and half after the December elections.
Data from the Bank of Ghana indicates that the Government Treasury securities were priced lower than the present rate during the early part of last year.
6-year bond oversubscribed 258%; Government accepted GH¢2.87bn
The Government of Ghana 6-year cedi Treasury bond was last week oversubscribed by a little above 258%.
That signaled rising investor confidence in the Ghanaian economy, following a successful elections last month.
Government accepted all the bids worth GH¢2.87 billion.
(By Charles Nixon Yeboah)