T-bills auction: Government records 37% undersubscription; interest rates rise

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The government missed its treasury bills target just a week after recording an oversubscription, as some investors continue to prefer fixed deposits and the Bank of Ghana bills.

According to auction results by the Bank of Ghana, the government recorded a 37% undersubscription of the short term instruments.

The Treasury received GH¢3.486 billion of the total bids, but accepted GH¢3.463 billion.

A little over 76% of the bids came from the 91-day bill.

About GH¢2.66 billion of the bids were tendered. The uptake was GH¢2.65 billion.

For the 182-day bill, GH¢705.7 million of the bids were tendered. The bids accepted were estimated to be worth GH¢695.3 million.

Similarly, GH¢119.5 million of the bids were tendered for the 364-day bill. About GH¢116.5 million of the bids were accepted.

Meanwhile, the yield on the 91-day bill increased by 5.0 basis point to 10.50%.

That of the 182-day bill also shot up to 12.39% from 12.36% the preceding week.

However, the yield on the 364-day bill increased by a basis point to 12.89%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	2.66bn	2.65bn
182 Day Bill	705.71m	695.39m
364 Day Bill	119.57m	116.57m

Total	3.486bn	3.463bn
Target	5.581bn

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