T-bills auction: Government misses target again; interest rates go up

The government missed its treasury bills target for the third consecutive week as investors continued to shift towards high-yielding instruments, such as fixed deposits.

According to auction results by the Bank of Ghana, the government T-bills were undersubscribed by nearly 10%.

The Treasury received GH¢5.817 billion of the bids tendered, but accepted GH¢5.754 billion.

Once again, the majority of the bids came from the 91-day bill.

About GH¢4.049 billion was tendered, representing 69.61% of the total bids. The uptake was GH¢4.029 billion.

For the 182-day bill, GH¢1.337 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢1.327 billion.

On the other hand, GH¢430.38 million was tendered for the 364-day bill. About GH¢397.82 million was accepted.

Meanwhile, the yield on the 91-day bill and 182-day bill went up, whilst that of the 364-day bill declined marginally.

The yield on the 3-month bill increased by 28 basis points to 10.41%.

That of the 182-day bill also rose to 12.38% from 12.23% the prior week.  

However, the yield on the 364-day bill decreased by 8.0 basis points to 13.00%.

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