T-bills auction: Government misses target again; interest rates fall

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The government missed its treasury bills target again as liquidity remained tight on the money market.

According to the auction results from the Bank of Ghana, the government T-bills auction was undersubscribed by 38.55%

The government was seeking to raise GH¢ 5.980 billion but got GH¢ 3.67 billion.

All the bids tendered were accepted.

The majority of the bids came from the 91-day T-bill. This was about GH¢2.9 billion, representing 79.23% of the total bids.

A little over GH¢572 million came from the 182-day bill, while GH¢189.95 million were tendered for the 364-day bill.

Meanwhile, interest rates fell on the money market.

This is in line with a lower inflation compared to last year, though September 2024 inflation increased marginally.

The yield on the 91-day bills declined by 19 basis points to 25.45%.

That of the 182-day bill also fell to 26.80% from the previous week’s 26.92%.

The 364-day bill also dropped by 16 basis points to 28.51%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	2.911 billion	2.911 billion
182 Day Bill	572.95 million	572.95 million
364 Day Bill	189.95 million	189.95 million

Total	3.674 billion
Target	5.980 billion

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