Gov’t misses t-bill target again as rates climb

The Government has failed to meet its treasury bills target for the seventh straight week, as investors continue to demand higher interest rates.

According to the Bank of Ghana, the latest auction was undersubscribed by about 10%, worse than the previous week raising concerns about demand for short-term government debt.

Investors submitted bids worth just over GH¢4.48 billion against a target of GH¢4.89 billion. Of this, the government accepted about GH¢4.0 billion.

The 91-day bill attracted the most interest, with GH¢1.89 billion in bids (42.2% of total), nearly all accepted.

The 364-day bill saw about GH¢1.8 billion in bids, with slightly over GH¢1.7 billion taken up. For the 182-day bill, all GH¢764.25 million in bids were accepted.

Meanwhile, interest rates are rising, especially on longer-term bills.

The 91-day rate held steady at 4.92%, the 182-day rate edged up to 6.97%, and the 364-day yield increased to 10.19%.