T-bills auction: Government fails to meet target again; interest rates go up

The government failed to meet its treasury bills target for the seventh consecutive week.

According to the auction results by the Bank of Ghana, the government missed the target by 22.82%.

It received GH¢6.12 billion, falling short of the target of GH¢7.525 billion.

The chunk of the bids again came from the 91-day bill, with investors offering GH¢3.71 billion. This represented 60.56% of the total bids. The uptake was GH¢3.633 billion.

For the 182-day bill, investors tendered in only GH¢814.85 million. A little over GH¢804 million of the bids were accepted.

The 364-day bill saw bids worth GH¢1.60 billion tendered. The treasury, however, accepted only GH¢100.99 million of the bids.

Meanwhile, interest rates increased for the first time in about five months.

The yield on the 91-day bill went up by 9.0 basis points to 14.65%.

That of the 182-day bill also increased to 15.02% from the previous week’s 15.01%.

However, the yield on the 364-day bill went up by 25 basis points to 15.41%.