Gov’t records 11% undersubscription of T. Bills
For the sixth week in a row, the government has failed to meet its treasury bills target despite sweeping up all bids, as investors continue to lean towards security instruments with higher returns such as the Bank of Ghana Bills.
According to the latest auction results released by the Bank of Ghana, the government missed its target by 11.56%, securing GH¢2.967 billion as against its original target of GH¢3.356 billion.
The 91-day bill attracted majority of the bids, with investors submitting GH¢2.028 billion, accounting for 68.37% of the total bids. All GH¢2.028 billion in bids were green ticked. For the 182-day bill, investors offered GH¢622.79 million, while the 364-day bill saw tenders worth a little over GH¢316 million.
Meanwhile, borrowing costs continued their downward trajectory along the yield curve. The yield on the 91-day bill dropped by 14 basis points to 14.56%. The 182-day bill also saw yields drop by 24 basis points to 15.01%, down from last week’s 15.25%.
Interest on the 364-day declined by 58 basis points to settle at 15.16% after witnessing a 9.0bps increase to 15.65% last week.
The Treasury is aiming to raise GH¢7,525 billion from the next sale of these government-issued securities.
See Full Auction Results Below:
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