T-bills auction: Government records 16% undersubscription, interest rates shoot up
The 91-day bill was once again the most subscribed, as GH¢3.368 billion of the bids were tendered, representing 68.52% of the total bids. The uptake was, however, GH¢3.362 billion.
The government failed to meet its treasury bills target, as demand continues to moderate.
According to auction results by the Bank of Ghana, the short-term instruments were undersubscribed by about 16%.
A little over GH¢4.9 billion were bought by the investors, as against a target of GH¢5.8 billion. The government, however, accepted about GH¢4.86 billion of the bids.
The 91-day bill was once again the most subscribed, as GH¢3.368 billion of the bids were tendered, representing 68.52% of the total bids. The uptake was, however, GH¢3.362 billion.
The 182-day bill recorded bids of GH¢749.67 million. A little above GH¢705 million was accepted.
For the 364-day bill, GH¢797.98 million of the bids were tendered. All the bids were accepted.
Meanwhile, interest rates went up across the yield curve.
The yield on the 91-day bill went down by 8.0 basis points to 4.99%.
That of the 182-day bill, however, remained unchanged at 7.04%.
On the other hand, the yield on the 364-day increased by 8.0 basis points to 10.45%.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 3.36bn | 3.36bn |
| 182 Day Bill | 749.67m | 705.65m |
| 364 Day Bill | 797.98m | 797.98m |
| Total | 4.22bn | 3.93bn |
| Target | 4.486bn |