T-bill auction: Gov’t misses target by GHS169m as yields dip

The Bank of Ghana has released new figures. The government missed its Treasury bill target by GHS169 million.

The government aimed to raise GHS 5.38 billion but received bids of GHS 5.21 billion. Despite this shortfall, all bids were fully accepted across all tenors. This indicates strong investor demand and the Treasury's willingness to absorb the full auction amount.

For the 91-day bill, GHS 3.85 billion was fully accepted. Bids for the 182-day bill totaled GHS747 million, and those for the 364-day bill reached GHS611 million, both fully allocated.

Market watchers note that accepting all bids may indicate a strong appetite for money from the treasury or government. Interest rates continue to decline, averaging between 15% and 16%. This reflects the Bank of Ghana’s monetary policy aimed at stabilizing inflation and moderating borrowing costs.

The yield on the 91-day bill dropped by 7 basis points to 15.16%. The rate for the 182-day bill also fell by 7 basis points to 15.70%. Meanwhile, the yield on the 364-day bill declined by 15 basis points to 16.80%.

Looking ahead, the government plans to raise GHS6.68 billion in its next auction.