T-bills auction: Government fails to meet target; accepts all bids

The government did not meet its treasury bill target. This comes a week after a 17% oversubscription.

According to the Bank of Ghana, demand for short-term instruments is low. This is due to the low yields offered.

The government raised GH¢3.537 billion from the sale of bills. It accepted all bids submitted by investors.

Most bids were for the 91-day bill. Investors tendered GH¢2.697 billion, which is 76.2% of total bids.

For the 182-day bill, GH¢554.06 million was received. Bids for the 364-day bill totaled GH¢286.17 million.

Interest rates are continuing to decline, lowering borrowing costs for the government. The yield on the 91-day bill fell by 13 basis points to 14.92%.

The yield on the 182-day bill decreased from 15.55% to 15.48%. The yield on the 364-day bill dropped by 9 basis points to 15.91%.

Here’s a summary of bids:

- 91 Day Bill: Bids tendered - GH¢2.697bn; Accepted - GH¢2.697bn
- 182 Day Bill: Bids tendered - GH¢554.06m; Accepted - GH¢554.06m
- 364 Day Bill: Bids tendered - GH¢286.17m; Accepted - GH¢286.17m

Total raised was GH¢3.537 billion against a target of GH¢3.890 billion.