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

For two consecutive months, the government missed its target for treasury bills as liquidity remained tight on the money market.

According to auction results from the Bank of Ghana, the government’s target fell by 991.61 million

The target for the auction was GH¢5.088 billion but the government got GH¢4.094 billion.

Some analysts have attributed the shortfall by some banks preparation to shore up their capital.

All the bids tendered for the short-term securities were accepted.

The uptake for the 91-day bill was GH¢2.532 billion, representing 61.84% of the total bids.

The bids tendered for the 182-bids were estimated at GH¢1.357 billion.

That of the 364-day bill was GH¢205.23 million cedis.

Meanwhile, interest rates went up across the yield curve.

The yield on the 91-day bill increased by 10 basis points to 24.88%.

Also, the interest on the 182-day bill shot up to 26.78% from the previous week 26.68%.

The 364-day yield was however 27.91%.