Ghana’s latest treasury bill auction drew demand nearly double the previous sale. Investors tendered 5.01 billion cedis across the 91 day, 182 day and 364 day bills at Tender 2032, held on November 6 for securities issued on November 9, against a government target of 3.54 billion cedis, an oversubscription of 41.5 percent. The Bank of Ghana accepted 4.11 billion cedis, 563.96 million cedis above the target. The previous auction had drawn 2.55 billion cedis of bids.
The demand sat overwhelmingly at the front of the curve. The 91 day bill attracted 3.00 billion cedis of bids, of which 2.93 billion cedis was accepted, just over 71 percent of the total accepted amount and a 97.5 percent acceptance rate. The 182 day bill drew 1.62 billion cedis of bids against 934.50 million cedis accepted, and the 364 day bill 388.45 million cedis against 243.15 million cedis accepted, acceptance rates of 57.7 and 62.6 percent respectively.
Weighted average rates for the week of November 9 to 13 were 4.5624 percent on an interest basis for the 91 day bill, 6.2020 percent for the 182 day bill and 9.4846 percent for the 364 day bill. The pattern is a steep bill curve funded mostly at three months: cheap for the Treasury today, but a refinancing schedule that returns to the market every quarter. The next auction, Tender 2033, carries a higher target of 5.57 billion cedis.