Government exceeds T-Bills target by 3% after slump in recent weeks

For the first time in about seven weeks, government has marginally achieved its Treasury bills target by 3%.

According to auction results by the Bank of Ghana, government mobilized a little above GH¢1.2 billion.

This will come as a huge sigh of relive for government after failing to meet the target for mobilizing the short term securities for about one and half months.

It intends borrowing more from the domestic market this year than the foreign market to reduce the cost of the nation’s debt burden.

According to the auctioning results, investors largely preferred the 91-day T-bill, mobilizing a little above GH¢1 billion, but accepted GH¢953 million worth of the bids.

It was followed by the 182-day T-bills which it got about GH¢176 million, but accepted a little above GH¢168 million.

The interest cost or yield remained unchanged from the previous week’s trading.

It stood at 12.78% for the 3-months bill and 13.55% for the 6-months bill.

The latter part of March this year saw liquidity tightening on the interbank market, thus depriving government the needed resources to fund the budget.

However, this sale of Treasury bills which witnessed appreciable interest will come as a boost to government expenditure planning for the rest of the year.