T-bills auction: Gov’t fails to meet target; interest rates fall sharply

The government failed to meet its treasury bills target after registering an undersubscription a week before.

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

It got GH¢5.292 billion from the T-bills auction, but rejected GH¢563.38 million of the bids tendered.

About GH¢2.985 billion came from the 91-day bill, representing 56.38% of the total bids. All the bids accepted were accepted.

For the 182-day bill, GH¢869 million were tendered. The uptake was GH¢668.54 million.

A little over GH¢1.438 billion were also tendered for the 364-day bill. About GH¢1.075 billion of the bids were accepted.

Meanwhile, interest rates continued to fall on the yield curve. The yield on the 91-day bill declined by 12 basis points to 15.23%.

That of the 182-day also eased to 15.77% from 16.03% the previous week.

The interest on the 364-day bill also dropped by a whopping 1.42 percentage points to 16.95%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	2.985bn	2.985bn
182 Day Bill	869.04m	668.54m
364 Day Bill	1.438bn	1.075bn

Total	5.292bn	4.729bn
Target	6.323bn

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ABOUT: Nana Kwesi Coomson

akcoomson@yahoo.com

An Entrepreneur, Corporate Social Responsibility, Corporate Communications Executive and Philanthropist. Editor-in-Chief of www.233times.com. A Senior Journalist with Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. His first degree is in Bachelor of Arts - Political Science (major) and History (minor) from the University of Ghana. He holds MSc in Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) from the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow who studied at Clark Atlanta University in USA on the Business and Entrepreneurship track.

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