T-bills auction: Government records 22% undersubscription, but at lower interest rate
The government recorded a 22% decline in its treasury bills target to GH¢4.33 billion.
This, however, came with lower interest rates.
According to the Bank of Ghana auction results, the auction target was GH¢5.57 billion, but the bids accepted by the government were GH¢3.4 billion, lower than the targeted amount.
A little over GH¢2.7 billion of the bids came from the 91-day bill, representing 63% of the total bids. The uptake was about GH¢2.51 billion.
The 182-day bill also received bids of about GH¢721.62 million. However, GH¢596.62 million was accepted.
About GH¢873 million of the bids were tendered for the 182-day bill. A little above GH¢344 million of the bids were accepted.
Meanwhile, interest rates went down along the yield curve.
The yield on the 91-day bill declined by a basis point to 4.55%.
However, the 182-day bill declined by 4.0 basis points to 6.16% from the preceding week’s 6.20%.
Also, the yield on the 364-day bill eased by 2.0 basis points to 9.46%.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 2.738bn | 2.510bn |
| 182 Day Bill | 721.62m | 596.62m |
| 364 Day Bill | 873.41m | 344.81m |
| Total | 4.333bn | 3.442bn |
| Target | 5.572bn |
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