T-bills: Government records 5.9% undersubscription, but interest rates decline marginally

Audio By Carbonatix

The government failed to meet its treasury bills target last week, as demand was moderate.

According to auction results by the Bank of Ghana, the short-term instruments were undersubscribed by 5.9%.

Investors bought T-bills worth a little over GH¢4.21 billion, as against a target of GH¢4.48 billion. The government, however, accepted about GH¢3.9 billion of the bids.

The 91-day bill was once again the most subscribed bill, as GH¢2.52 billion of the bids were tendered, representing 59.8% of the total bids. The uptake was, however, GH¢2.51 billion.

The 182-day bill recorded bids of GH¢877.72 million. A little above GH¢723 million was accepted.

For the 364-day bill, GH¢ 817.12 million of the bids were tendered. About GH¢ 699 million of the bids were accepted.

Meanwhile, interest rates declined across the yield curve.

The yield on the 91-day bill went down by 1.0 basis points to 4.91%.

That of the 182-day bill, however, remained unchanged at 7.04%.

On the other hand, the yield on the 364-day dropped by 2.0 basis points to 10.37%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	2.52bn	2.51bn
182 Day Bill	877.72m	723.5m
364 Day Bill	817.12m	699.62m

Total	4.22bn	3.93bn
Target	4.486bn

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