Mobilised funds from T-bill auction falls 20.4% below target
Funds raised from the auction of 91, 182 and 364 days treasury bills on October 1, 2021, by government, fell short by 20.4 percentage points.
The 20.4 percent shortfall in mobilized funds as against government’s target of Ghs 972 million, translates into some Ghs 165 million which government was unable to draw from investors.
In all, government was only able to raise some Ghs 807 million from the auction of the short-term debt instruments.
Results released by the Bank of Ghana (BoG) on the auction of the 91, 182 and 364 days T-bills (Tender 1766), indicate that government accepted all bids tendered in by primary dealers for the short-term debt instruments with the exception of the 364 days T-bills.
Some Ghs 591 million and Ghs 119 million bids tendered for the 91 and 182 days T-bills were all accepted by government.
For the 364 days, a total of Ghs 98.95 million bids were tendered in with government accepting Ghs 97.30 million, rejecting some Ghs 1.65 million.
Bids tendered in for the 91, 182 and 364 days T-bills were insufficient to meet their respective targets hence government’s failure to raise the needed funds to meet its short term liquidity needs.
In the previous auction however, government exceeded its target of raising some Ghs 1.29 billion by accepting an additional Ghs 776 million bids made by investors for the 91 and 182 days treasury bills and a 2-year treasury note.
Government in the said auction on September 24, 2021, raised some Ghs 2.06 billion.
Government’s failure to meet its target for the 91,182 and 364 days treasury bills can be attributed to a tightening of liquidity on the interbank market.
Meanwhile, government in the upcoming auction of its 91 and 182 days treasury bills, is looking to raise some Ghs 1,475 million from the domestic debt market.
Read details of the auction results:
Auctresults-1766 by Fuaad Dodoo on Scribd
