T-Bills auction target missed as bids fall by 12.5%
Government in the issuance of its 91,182 and 364 days treasury bills missed its target of raising GHS 1.28bn.
Government in the issuance of the short term debt securities managed to secure some GHS 1.12bn from the debt market.
By failing to achieve its auction target, government lost some GHS 159m (12.5%) in bids that would have otherwise accrued to it had it attained the GHS 1.28bn target.
Bids for the 91, 182 and 364 days T-Bills amounted to GHS 887 million, GHS 145 million and GHS 101 million respectively with government accepting all bids made for the 91, 182 and 364 days T-Bills.
The 91, 182 and 364 days T-Bills were auctioned at interest rates of 19%, 22% and 24% respectively.
Government’s inability to achieve its set targets for T-Bills auction can mainly be attributed to the disinterest of investors in the short term instruments given the high rate of inflation which currently stands at 23.6%.
With the outlook of inflation projected to remain negative and continue the upward trend, investors disinterest in the short-term debt instruments will continue.
Government, in its next auction – June 3– is aiming at raising some GHS 1,228 million from the issuance of the 91 and 182 day bills.
Find details of auction results below:
Auctresults-1800 by Fuaad Dodoo on Scribd
