T-bills auction: Government misses target for second time; interest rates fall marginally

The government missed its treasury bill target for the second time this year.

According to auction results by the Bank of Ghana, the government recorded a 16% undersubscription of the sale of the short-term instruments.

Indeed, the government T-bill target fell short of the target by GH¢935.2 million. It was seeking GH¢5.644 billion but got GH¢4.08 billion.

Most of the bids came from the 91-day bill as GH¢3.506 billion, representing 74.47% of the total tendered bids.

The uptake was GH¢3.029 billion.

The 364-day bill, however, received bids worth GH¢619.47 million. The bids accepted were GH¢500.5 million.

For the 182-day bill, the bids tendered were estimated at GH¢582.8 million. All the bids tendered were accepted.

Meanwhile, interest rates fell slightly on the yield curve.

The yield on the 91-day bill declined by 14 basis points to 15.71%.

The 182-day bill stood at 16.73% from the previous 16.92%.

The rate on the 364-day bill, however, remained the same at 18.84%.