T-bills auction: Government’s target undersubscribed by nearly 49% despite fall in interest rates

The government missed its treasury bills target for the fourth consecutive week as investors continued their shift towards high-yielding instruments, including fixed deposits.

According to auction results by the Bank of Ghana, the government T-bills were undersubscribed by nearly 49%.

The Treasury received only GH¢3.2 billion of the bids tendered, as against a target of GH¢6.7 billion.

This shows that demand for government securities has dwindled sharply in recent weeks.

Once again, the majority of the bids came from the 91-day bill. About GH¢2.05 billion was tendered, representing 58.39% of the total bids. The uptake was GH¢2.01 billion.

For the 182-day bill, GH¢1.14 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢1.12 billion.

In contrast, GH¢321.06 million was tendered for the 364-day bill. About GH¢184 million was accepted.

Meanwhile, the yield went down across the curve.

The 91-day bill decreased by 35 basis points to 10.41%.

That of the 182-day bill also went down to 12.37% from 12.38% the previous week.

The yield on the 364-day bill also decreased by a basis point to 12.99%.

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