T-bills auction: Government misses target for second time; interest rates fall marginally

The government missed its treasury bill target for the second time this year.

According to the Bank of Ghana, there was a 16% undersubscription. The government aimed to raise GH¢5.644 billion but only received GH¢4.08 billion. This means it fell short by GH¢935.2 million.

Most bids were for the 91-day bill, totaling GH¢3.506 billion. This amount represented 74.47% of all bids submitted. The uptake for this bill was GH¢3.029 billion.

The 364-day bill received bids worth GH¢619.47 million, with accepted bids at GH¢500.5 million. For the 182-day bill, bids totaled GH¢582.8 million, and all were accepted.

Interest rates on the yield curve fell slightly this week. The yield on the 91-day bill dropped by 14 basis points to 15.71%.

The rate for the 182-day bill decreased from 16.92% to 16.73%. However, the rate on the 364-day bill remained unchanged at 18.84%.

Here’s a summary of the securities:

- **91 Day Bill**: Bids tendered: GH¢3.506bn; Bids accepted: GH¢3.029bn
- **182 Day Bill**: Bids tendered: GH¢582.87m; Bids accepted: GH¢582.87m
- **364 Day Bill**: Bids tendered: GH¢619.47m; Bids accepted: GH¢500.51m

Total bids tendered were GH¢4.708 billion, while total bids accepted were GH¢4.113 billion against a target of GH¢5.644 billion.