T-bills auction: Government fails to meet target only a week of oversubscription; interest rates rise

The government treasury bill auction returned to its undersubscription trajectory a week after it recorded a marginal oversubscription.

According to the Bank of Ghana auction results, the Treasury failed to meet its target by GH¢1.486 billion.

The government got GH¢5.881 billion from the sale of the short-term instrument, as against a target of GH¢4.394 billion, a 25.7% undersubscription.

All the bids were accordingly accepted.

The 91-day bill received the bulk of the bids of GH¢3.788 billion, about 85.97% of the total bids.

About GH¢441.43 million of the bids came from the 182-day bill, while GH¢175.04 million were made up of the 364-day bills.

Meanwhile, interest rates rose across the yield curve.

The yield on the 91-day bill was up by 11 basis points to 25.01%.

The rate on the 182-day bill increased by 3.0 basis points to 26.81%, whereas that of the 364-day bill also inched up to 28.07% from the previous week’s 27.91%.

Despite an expected decline in inflation, interest rates remain high on the money market.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	3.778 billion	3.778 billion
182 Day Bill	441.43 million	441.43 million
364 Day Bill	175.04 million	175.04 million

Total	4.394 billion
Target	5.881 billion

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