Audio By Carbonatix
The government failed to meet its treasury bills target for the 7th consecutive week, as investors want higher interest rates.
According to the auction results by the Bank of Ghana, the government recorded about 10% undersubscription of its auction target, higher than the previous week. The continuous undersubscription of the short-term instruments by the government is a cause for concern.
Investors bought T-bills worth a little over GH¢4.48 billion, as against a target of GH¢4.89 billion. It, however, accepted about GH¢4.0 billion of the bids.
The 91-day bill was once again the most subscribed bill as GH¢1.89 billion of the bids were tendered, representing 42.2% of the total bids. The uptake was, however, GH¢1.88 billion.
The 364-day bill also recorded bids of about GH¢1.8 billion. The bids accepted were a little above GH¢1.7 billion.
For the 182-day bill, GH¢ 764.25 million of the bids were tendered. All the bids were accepted.
Meanwhile, interest rates continued to rise, but at the longer end of the curve.
The yield on the 91-day bill, however, remained unchanged at 4.92%.
That of the 182-day bill also went up to 6.97% from the previous week’s 6.96%.
Similarly, the yield on the 364-day bill inched up by 7.0 basis points to 10.19%.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 1.89bn | 1.88bn |
| 182 Day Bill | 764.25m | 764.24m |
| 364 Day Bill | 1.82bn | 1.78bn |
| Total | 4.48bn | 4.43bn |
| Target | 5.009bn |
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