By Jibril Abdul Mumuni
Accra, Oct. 12, GNA – Investors showed a strong preference for 91-day Treasury bills at the latest government auction, choosing shorter-term investments over longer-term securities.
Results released by the Bank of Ghana showed that the 91-day bill attracted bids worth GHS3.29 billion, the highest among the three instruments offered at the auction.
The 182-day bill received bids worth GHS1.31 billion, while the 364-day bill attracted GHS468.92 million.
In all, investors submitted bids worth GHS5.06 billion, far above the Government’s target of GHS2.87 billion for auction showing strong demand for Treasury bills.
The Government accepted GHS3.01 billion of the 91-day bill bids, GHS1.26 billion of the 182-day bill bids, and GHS136.26 million of the 364-day bill bids.
The auction results also showed that the 91-day bill carried a yield of 4.55 per cent, while the 182-day and 364-day bills offered 6.09 per cent and 8.89 per cent, respectively.
Despite the higher returns offered by the longer-term bills, investors still placed most of their funds in the 91-day security, highlighting their preference for liquidity and flexibility.
For the next auction, the Government is targeting GHS5.02 billion through the issuance of 91-day, 182-day and 364-day Treasury bills.
GNA
Edited by Agnes Boye-Doe