Gov’t auctions 364 day T-Bill at 27% interest rate; exceeds auction target by GHS 129m
Government, through the Finance Ministry, secured a total of GHS 1,440 million in funds from the auction of the 91, 182 and 364 days treasury bills.
The secured amount was some GHS 129m more than the programmed auction target of GHS 1,311 million.
After several months of missing its auction targets, government, in the past couple of weeks have returned to ‘winning ways’, achieving or marginally exceeding its targets on auctioned 91, 182 and 364 days treasury bills.
This could be attributed to the easing of liquidity on the interbank market.
Bids for the 91, 182 and 364 days T-Bills amounted to GHS 1,165 million, GHS 230 million and GHS 197 million respectively with government accepting GHS 1,165 million, GHS 209 million and GHS 66 million in bids made for the securities.
The GHS 1,440 million secured by government however, came at increased interest rates.
The 91, 182 and 364 days T-bills were auction at interest rates of 25%, 26% and 27% respectively, making it more costly for government to service its domestic debts.
The high interest rates on the T-Bills reflect the recent hike in the Central Bank’s policy rate.
Despite the increased interest rates on government’s short term debt instruments, returns on these instruments are negative given that their interest rates fall below the country’s headline inflation of 27.6%.
Peruse details of the auction below:
Auctresults-1804 by Fuaad Dodoo on Scribd
