T-bills auction: Government records 16% undersubscription, interest rates shoot up

Audio By Carbonatix

The government failed to meet its treasury bills target, as demand continues to moderate.

According to auction results by the Bank of Ghana, the short-term instruments were undersubscribed by about 16%.

A little over GH¢4.9 billion were bought by the investors, as against a target of GH¢5.8 billion. The government, however, accepted about GH¢4.86 billion of the bids.

The 91-day bill was once again the most subscribed, as GH¢3.368 billion of the bids were tendered, representing 68.52% of the total bids. The uptake was, however, GH¢3.362 billion.

The 182-day bill recorded bids of GH¢749.67 million. A little above GH¢705 million was accepted.

For the 364-day bill, GH¢797.98 million of the bids were tendered. All the bids were accepted.

Meanwhile, interest rates went up across the yield curve.

The yield on the 91-day bill went down by 8.0 basis points to 4.99%.

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

On the other hand, the yield on the 364-day increased by 8.0 basis points to 10.45%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	3.36bn	3.36bn
182 Day Bill	749.67m	705.65m
364 Day Bill	797.98m	797.98m

Total	4.22bn	3.93bn
Target	4.486bn

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