T-bills auction: Government exceeds target by 11.9%, but interest rates surge

Audio By Carbonatix

The government exceeded its treasury bills target by 11.9%, reversing a two-week undersubscription.

According to auction results by the Bank of Ghana, this, however, came at a higher cost as interest rates surged marginally on the yield curve.

The government got about GH¢6.0 billion but accepted GH¢5.8 billion of the bids.

The 91-day bill was once again the most subscribed, as GH¢3.56 billion of the bids were tendered, representing 58.4% of the total bids. The uptake was, however, GH¢3.50 billion.

The 182-day bill recorded bids of GH¢1.7 billion. A little above GH¢1.6 billion was accepted.

For the 364-day bill, GH¢ 815.57 million of the bids were tendered. About GH¢ 640 million were accepted.

Meanwhile, interest rates went up across the yield curve.

The yield on the 91-day bill went down by 2.0 basis points to 5.01%.

That of the 182-day bill also increased to 7.09%, from 7.04%.

Also, the yield on the 364-day increased by 38.0 basis points to 10.83%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	3.56bn	3.50bn
182 Day Bill	1.71bn	1.68bn
364 Day Bill	815.57m	640.25m

Total	6.09bn	5.83bn
Target	5.44bn

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