T-bills: Government record 20% undersubscription; interest rates continue to rise
The 91-day bill was once again the most subscribed, as GH¢2.25 billion of the bids were tendered, representing 53.6% of the total bids.
The government failed to meet its treasury bills target just a week after achieving an oversubscription, as demand moderated.
According to auction results by the Bank of Ghana, the short-term instruments were undersubscribed by about 20%.
The government received GH¢4.20 billion bids from the investors. This was against a target of GH¢5.27 billion. It, however, accepted all the bids tendered.
The 91-day bill was once again the most subscribed, as GH¢2.25 billion of the bids were tendered, representing 53.6% of the total bids.
The 182-day bill recorded bids worth GH¢802.87.
For the 364-day bill, GH¢1.146 billion was tendered.
Meanwhile, interest rates continue to rise on the yield curve.
The yield on the 91-day bill increased by 26.0 basis points to 5.30%.
That of the 182-day bill also went up to 7.13% from 7.08%.
Similarly, the yield on the 364-day increased by 39.0 basis points to 11.36%.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 2.25bn | 2.25bn |
| 182 Day Bill | 802.87m | 802.87m |
| 364 Day Bill | 1.146bn | 1.146bn |
| Total | 4.206bn | 4.206bn |
| Target | 5.274bn |