T-bill auction: Government misses target again; interest rates continue to rise

Government missed its treasury bills target once again by 7.0%.

According to auction results by the Bank of Ghana, the government got GH¢6.413 billion as against a target of GH¢6.89 billion

The T-bills sale fell short of its target by about GH¢482 million according to the results by the Central Bank.

All the bids were however accepted.

The 91-day bill saw bids worth GH¢4.244 billion, representing about 66.0% of the total bids accepted.

For the 182-day bill, about GH¢843 million were tendered by the investors.

A little over GH¢1.32 billion cedis came from the 364-day bill but at a higher cost.

Meanwhile, interest rates continued to surge on the yield curve.

This is expected to increase the government’s interest payments.

The yield on the 91-day bill went up by 23 basis points to 27.19%.

That of the 182-day bill also increased to 27.98% from 27.78% the previous week.

For the 364-day bill, the interest shot up by 61 basis points to 29.82%.