Ghana government raises GH¢5.49b from Treasury bills in well-subscribed auction

Ghana authorities raises GH¢5.49b from Treasury payments in well-subscribed public sale

The Ghana authorities has mobilised a complete of GH¢5.49 billion from its newest Treasury invoice public sale held on Friday, August 1, based on outcomes launched by the Financial institution of Ghana.

The public sale noticed a robust investor demand as whole bids submitted throughout the 91-day, 182-day and 364-day payments amounted to GH¢6.79 billion, exceeding the federal government’s goal of GH¢3.86 billion.

In the long run, GH¢5.49 billion value of bids had been accepted.

The public sale, carried out beneath Tender 1966, is scheduled for problem on Monday, August 4, 2025.

The public sale report, within the breakdown, famous that GH¢4.32 billion was accepted out of GH¢4.86 billion tendered for the 91-day invoice.

For the 182-day invoice, GH¢823.28 million was accepted out of the GH¢1.16 billion tendered.

The 364-day invoice noticed GH¢343.49 million accepted out of the GH¢774.65 million that was tendered.

Average rates of interest

The report confirmed that regardless of some bids quoting as excessive as 25%, the Financial institution of Ghana allotted securities at considerably decrease charges.

In the long run, the weighted common low cost charge for the 91-day invoice was 10.04%, with Curiosity Price at 10.29%.

The low cost charge for the 182-day invoice was 11.64% with Curiosity Price at 12.36%, whereas the low cost charge for the 364-day invoice was 11.70% with Curiosity Price at 13.25%.

Likewise, the ranges for the total allotment bid had been a lot narrower.

The 91-day safety ranged between 8.70% and 10.55%

The 182-day invoice ranged between 9.90% and 12.41%.

The 364-day invoice ranged between 10.00% and 12.13%.

The consequence signifies a bid-to-cover ratio of 1.76, pointing to sustained investor confidence and beneficial value of borrowing for the federal government amid excessive market liquidity.

A excessive bid-to-cover ratio, usually 2.0, means that buyers are wanting to lend to the federal government, which is a constructive signal for an public sale. Robust demand typically leads to decrease rates of interest and subsequently decrease borrowing prices for the federal government.

Conversely, a low bid-to-cover ratio (nearer to 1.0) suggests weak demand and a sign that buyers are much less assured within the safety or that the market isn’t discovering the provided rate of interest enticing.

The low ratio would possibly result in increased value of borrowing for the federal government, because it has to supply extra enticing charges to promote its Treasury payments

Earlier and upcoming auctions

The earlier public sale (Tender 1965), held on July 25, recorded GH¢28.1 billion in tenders, of which GH¢15.16 billion was accepted – reflecting persevering with robust urge for food for presidency securities.

In the meantime, the Financial institution of Ghana has introduced a goal of GH¢8.59 billion for the upcoming Tender 1967- greater than twice that of the final public sale.

Supply: GNA

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