T-bills auction: Government misses target for 3rd consecutive time, but rejects GH¢2.3bn of bids

The government has missed its treasury bill target for the third time this year. Investor demand for these short-term instruments has decreased.

According to the Bank of Ghana's auction results, the Treasury rejected over GH¢2.3 billion in bids. This resulted in a 7.59% undersubscription.

Overall, the government raised GH¢4.05 billion from the sale. This amount is less than the target of GH¢4.39 billion.

Most bids came from the 91-day bill. About GH¢3.38 billion, or 83% of total bids, were for this bill. The government accepted only GH¢1.44 billion of those bids.

For the 182-day bill, only GH¢501.17 million was tendered, with an uptake of GH¢81.09 million.

A little over GH¢176 million was tendered for the 364-day bill, and the government accepted GH¢161 million.

Meanwhile, interest rates on treasury bills continued to fall on the yield curve. The yield on the 91-day T-bill dropped by 7 basis points to 15.64%.

The rate for the 182-day bill fell to 16.50%, down from 16.70%. The rate on the 364-day bill also declined slightly to 18.83%.

Here are some key figures:

- 91 Day Bill: Bids Tendered: GH¢3.38bn; Bids Accepted: GH¢1.44bn
- 182 Day Bill: Bids Tendered: GH¢501.17m; Bids Accepted: GH¢81.09m
- 364 Day Bill: Bids Tendered: GH¢176m; Bids Accepted: GH¢161m
- Total: Bids Tendered: GH¢4.05bn; Bids Accepted: GH¢2.36bn
- Target: GH¢4.39bn