T-bills Auction: Gov’t misses target by GH¢1.07bn; interest rates continue to surge

The government missed its ambitious Treasury bills target by 16.81%.

According to the auction results from the Bank of Ghana, the government secured GH¢5.180 billion, falling short of the targeted GH¢6.228 billion.

This auction comes after a private legal practitioner filed an application at the Supreme Court to stop the government from issuing Treasury bills.

The results indicated that all bids were accepted.

The majority of the bids came from the 91-day bill, with GH¢3.942 billion, representing 76.1% of the total bids, tendered.

Around GH¢653.43 million were tendered for the 182-day bill.

Similarly, the 364-day bill saw an offer of just over GH¢584 million.

Meanwhile, interest rates rose for the fourth consecutive week.

The increasing interest rates will raise the cost of servicing domestic instruments.

The yield on the 91-day bill increased by 14 basis points to 26.96%.

Likewise, the interest rate on the 182-day bill rose to 27.78%, up from 27.67% the previous week.

The rate for the 364-day bill also increased by 3 basis points to 29.21%.

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