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

The government missed its treasury bill target for the third consecutive time this year as investor demand for the short-term instruments diminished.

According to auction results by the Bank of Ghana, the Treasury rejected a little over GH¢2.3 billion of the total bids despite recording a 7.59% undersubscription.

Overall, the government got GH¢4.05 billion from the sale of the short-term instruments as against a target of GH¢4.39 billion.

The majority of the bids came from the 91-day bill.

About GH¢3.380 billion representing 83% of the total bids came from the 3.0 months bill. The government only accepted GH¢1.44 billion of the bids.

For the 182-day bill, only GH¢501.17 million were tendered. The uptake was GH¢81.09 million.

A little over GH¢176 million were tendered for the 364-day bill, with the government accepting GH¢161 million of the bids.

Meanwhile, interest rates continued to fall on the yield curve.

The yield on the 91-day T-bill declined by only 7.0 basis points to 15.64%.

The 182-day bill also dropped to 16.50% from the previous 16.70%.  

The rate on the 364-day bill also declined marginally to 18.83%.