T-bills auction: Interest rates fall for 14th consecutive week; gov’t fails to meet target again

Interest rates continued a downward trend for the 14th consecutive week in 2024 in line with the disinflation process.

Nonetheless, the government failed to achieve its treasury bill target for the second time this year.

This is due to its reduced appetite for borrowing on the treasury market as a result of inflows from the World Bank, the International Monetary Fund and its donor partners.

The Ghana Statistical Service is expected to announce inflation for March 2024 on Wednesday, April 10, 2024. Though many analysts have predicted an increase in the inflation rate for March 2024, that could be reversed in April 2024 and the coming months.

According to auction results by the Bank of Ghana, the 91-day bill fell by 10 basis points to 25.73%.

The yield on the 182-day bill also plummeted to 28.22% from 28.24% the previous week.

Similarly, the 364-day bill went down by 51 basis points to 28.33%.

Meanwhile, the T-bills auction failed to meet its target by about 8.8%.

The government secured GH¢2.56 billion of the total bids tendered.

A chunk of the bids came from the 91-day bill. About GH¢2.02 billion, representing 78.9% was offered and the government accepted all.

For the 182-day bill, GH¢417.58 million were the bids tendered. The uptake was also GH¢417.58 million.

GH¢120.09 million were received for the 364-day bill.