T-Bill Auction: Gov’t records 9% undersubscription, but rates edge up
The government has fallen short of its weekly treasury bill auction target by a 9% undersubscription despite a 98.9% acceptance rate, as interest rates continue to fluctuate.
The Bank of Ghana’s latest auction results show that the Treasury received GH¢5.817 billion worth of bids across the three maturities, falling short of the week’s GH¢6.426 billion target.
The 91-day treasury bill dominated investor interest, attracting bids worth GH¢4.04 billion, of which GH¢4.02 billion was accepted, representing about 70% of the total bids accepted.
The 182-day bill also saw considerable demand with GH¢1.33 billion in bids tendered, of which authorities accepted about GH¢1.32 billion.
The 364-day bill attracted bids worth GH¢430.38 million, the Treasury however accepted a little over GH¢397 million of these tenders.
Meanwhile, the weighted average rates edged up across the shortest- and medium-term tenors. Interest on the 91-day bill rose 27 basis points 10.42% from lats week’s 10.14%. Yields on the 182-day bill also rose to 12.38% from the 12.23% recorded last week.
The rate for the 364-day bill however dropped to 13.00%, from 13.08% in the last auction.
Looking ahead, the Treasury has set a GH¢6.723 billion target for the upcoming sale of these debt instruments.
See Full Auction Results Below:
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