T-bills auction: Government misses target for second time; interest rates fall marginally

Audio By Carbonatix

The government missed its treasury bill target for the second time this year.

According to auction results by the Bank of Ghana, the government recorded a 16% undersubscription of the sale of the short-term instruments.

Indeed, the government T-bill target fell short of the target by GH¢935.2 million. It was seeking GH¢5.644 billion but got GH¢4.08 billion.

Most of the bids came from the 91-day bill as GH¢3.506 billion, representing 74.47% of the total tendered bids.

The uptake was GH¢3.029 billion.

The 364-day bill, however, received bids worth GH¢619.47 million. The bids accepted were GH¢500.5 million.

For the 182-day bill, the bids tendered were estimated at GH¢582.8 million. All the bids tendered were accepted.

Meanwhile, interest rates fell slightly on the yield curve.

The yield on the 91-day bill declined by 14 basis points to 15.71%.

The 182-day bill stood at 16.73% from the previous 16.92%.

The rate on the 364-day bill, however, remained the same at 18.84%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	3.506bn	3.029bn
182 Day Bill	582.87m	582.879m
364 Day Bill	619.47m	500.51m

Total	4.708bn	4.113bn
Target	5.644bn

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