Ghana and Nigeria report undersubscribed or scaled-back T-bill auctions
Separate Treasury bill auctions in Ghana and Nigeria saw authorities accept only a portion of bids received, with rates moving amid the adjustments.
What happened
Ghana's government received GH¢4.17 billion in bids at a Treasury bills auction but accepted GH¢3.48 billion, recording a 16% undersubscription, with interest rates showing mixed performance across the yield curve.1
In Nigeria, the Debt Management Office rejected N763 billion in bids at a recent Treasury bills auction, accepting N269.06 billion, as the one-year borrowing rate increased.2
According to Nairametrics, the DMO rejected approximately 74% of N1.032 trillion in total subscriptions at the October 14 auction of Nigerian Treasury Bills, accepting about 26.07% of bids, and raised the one-year rate to 15.90%, its highest since August.3
Ghana's Treasury received GH¢4.17 billion in total bids at a Treasury bills auction but accepted only GH¢3.48 billion, representing a 16% undersubscription, with interest rates recording mixed performance across the yield curve.1
Key points
What the coverage leaves out
- None of the outlets reviewed reported the reasons given by Ghana's or Nigeria's debt management authorities for the levels of bid rejection or undersubscription.
- None of the outlets reviewed reported market or investor reaction to the auction results.
- Specific interest rate figures across Ghana's yield curve were not detailed beyond being described as mixed performance.
Why it matters
The Nigerian one-year Treasury bill rate reached 15.90%, described as the first time at this level since August.3
Sources (3)
Every outlet we drew on, grouped by where it is based. Read the originals for the full reporting.
Africa
- 1MyJoyOnlineGHPrivate
- 2PunchNGPrivate
- 3NairametricsNGPrivate
DMO rejects 74% of NTB bids, raises one-year rate to 15.90% for first time since August