Many expect a win for the BJP and allies to help boost infrastructure investment?

The money was raised through the sale of a 297 million dollars Treasury bond floated over a week ago.

The 15-year securities was massively subscribed by investors, with analysts describing commercial banks as the highest bidders.

“The total number of bids received was 1,268 amounting to 346 million dollars and the weighted average rate for successful bids was 13.17 percent,” said the central bank.

Treasury accepted bids worth 302 million dollars from the 346 million dollars offered by investors at the rate of 13.2 percent.

According to the Central Bank, the road, energy and water sectors will each get 100 dollars to fund projects.

However, as subscription for the bond remained high, bids for the benchmark 91-day securities fell below the target for the first time in many months.

The regulator’s data showed that on the short-term paper, for the 39 million dollars which it had floated, investors this week put in 147 bids worth only 13.5 million dollars, a 34 percent performance rate.

A similar scenario was registered with the 364-day T-bill, where there were 176 bids worth 49 million dollars against the 59 million dollars offered, with the government gobbling up all of them.

Analysts at Cytonn, a Nairobi-based investment management firm, said the downward trend for the short-term papers was mainly due to investors going for the bonds and the expected low interest rate environment following the operationalization of the Banking Act Amendment 2015, which has led to more liquidity in the market. Enditem

Source: Xinhua/NewsGhana.com.gh

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