T-Bill auction: government fails to meet target for third straight time, rejects GH¢2.3bn in bids
In a continuing trend, the government has once again fallen short of its treasury bill target, marking the third consecutive time this year as interest in these short-term financial instruments wanes.
The latest auction results released by the Bank of Ghana reveal that the Treasury turned down just over GH¢2.3 billion of the total bids, facing a 7.59% undersubscription. In the end, the government managed to secure GH¢4.05 billion from the sale of these short-term instruments, falling short of its target of GH¢4.39 billion.
A significant portion of the bids originated from the 91-day bill, which accounted for about GH¢3.380 billion representing 83% of the total bids. However, the government accepted only GH¢1.44 billion of those submissions.
For the 182-day bill, there were only GH¢501.17 million tendered, with an uptake of just GH¢81.09 million. Meanwhile, for the 364-day bill, slightly more than GH¢176 million were submitted, and the government accepted GH¢161 million of those bids.
In the backdrop of these auction results, interest rates on the yield curve continued their downward trend. The yield on the 91-day T-bill saw a slight decrease of 7.0 basis points, settling at 15.64%.
The 182-day bill also experienced a drop, falling to 16.50% from its previous rate of 16.70%. Similarly, the rate for the 364-day bill edged down marginally to 18.83%.
By: Novire Kuuyizie Francis
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