T-bills auction: Government fails to meet target; accepts all bids

The government failed to meet its treasury bill target, just a week after it recorded a 17% oversubscription.

According to the auction results by the Bank of Ghana, demand for the short-term instruments remains subdued due to the low yields.

The government got GH¢3.537 billion from the sale of the bills. It consequently accepted all the bids tendered by the investors.

A chunk of the bids came from the 91-day bill, where GH¢2.697 billion, representing 76.2% of the total bids, were tendered.

For the 182-day bill, GH¢ 554.06 million was received.

The bids tendered for the 364-day bill were estimated at GH¢286.17 million.

Meanwhile, interest rates continued to decline, reducing the government’s cost of borrowing in the domestic market.

The yield on the 91-day bill went down by 13 basis points to 14.92%.

That of the 182-day bill was 15.48% compared with the previous week’s 15.55%.

The 364-day bill also dipped by 9.0 basis points to 15.91%.