T-bills auction: Government fails to meet target again, but interest rates decreased marginally

Investors continued to shift their investments into Bank of Ghana bills and fixed deposits, as they prefer financial instruments with higher returns.

According to auction results by the Bank of Ghana, the government failed to meet its target for the second week running. It was actually undersubscribed by 30%.

The Treasury received GH¢2.59 billion of the total bids, but accepted GH¢2.57 billion.

A little over 78% of the bids came from the 91-day bill. About GH¢2.028 billion of the bids were tendered.

The uptake was GH¢2.023 billion.

For the 182-day bill, GH¢394.4 million of the bids were tendered. This was lower than the bids tendered last week.

The bids accepted were estimated to the tune of GH¢389.4 million.

Also, GH¢170.6 million of the bids were tendered for the 364-day bill. About GH¢165.6 million of the bids were accepted.

Meanwhile, interest rates went down marginally on the yield curve.

The yield on the 91-day bill reduced by 3.0 basis points to 10.47%.

However, that of the 182-day bill decreased to 12.35% from 12.39% the preceding week.

Additionally, the yield on the 364-day bill declined by 2.0 basis points to 12.87%.

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