T-bills: Government fails to meet its treasury bill target again; interest rates continue to rise

The government failed to meet its treasury bill target for the fourth week in a row. According to auction results by the Bank of Ghana, the government recorded a 33% undersubscription of the short-term instruments.

This is coming despite a decline in the inflation rate.

According to the auction results, the government obtained GH¢4.51 billion of the total bids, but accepted GH¢4.50 billion. The target for the auction was GH¢6.83 billion.

About 80% of the bids came from the 91-day bill.  A little over GH¢3.61 billion of the bids were tendered. The uptake was GH¢3.60 billion.

For the 182-day bill, GH¢617.63 million of the bids were tendered. All the bids were accepted.

Also, GH¢282 million of the bids were tendered for the 364-day bill. A little over GH¢279 million of the bids were accepted.

Meanwhile, Interest rates continued to rise on the yield curve.

 The yield on the 91-day bill increased by 11 basis points to 10.92%.

That of the 182-day bill also shot up to 12.61% from 12.49% the previous week.

The yield on the 364-day bill also increased by 6.0 basis points to 11.01%.

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