T-bills: Government’s target undersubscribed by 55%; interest rates rise

The government missed its treasury bills target by a significant 55%, the biggest undersubscription recorded so far this year.

This is coming after it posted a 23% oversubscription of the short-term instruments the previous week.

According to trading results by the Bank of Ghana, the government got GH¢2.92 billion of the short-term instruments as against a target of GH¢6.57 billion.

It, however, accepted GH¢2.08 billion of the total bids.  

A little over 71.2% of the bids came from the 91-day bill compared with 83% the preceding week.  About GH¢2.085 billion of the bids were tendered. The uptake was GH¢2.080 billion.

For the 182-day bill, GH¢704.6 million of the bids were tendered. The bids accepted were estimated to the tune of GH¢699 million.

Also, GH¢136.5 million of the bids were tendered for the 364-day bill. About GH¢110 million of the bids were accepted. 

Meanwhile, the yield on the 91-day bill increased by 16 basis points to 10.69%. 

That of the 182-day bill also shot up to 12.43% from 12.30% the preceding week.

The yield on the 364-day bill rose by 5.0 basis points to 12.92%.