Gov’t misses T-Bills auction target by GHS 424m
Government in the issuance of its 91,182 and 364 days treasury bills missed its target of raising GHS 1.12bn.
Government in the auction of the short-term securities missed its target by some GHS 424m as it managed to raise GHS 700m from the debt market.
Bids for the 91, 182 and 364 days T-Bills amounted to GHS 496 million, GHS 152 million and GHS 52 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 33.3%, 34.8% and 35% respectively.
Government’s inability to achieve 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 37.2%.
With the outlook of inflation projected to remain negative and continue the upward trend, investors disinterest in the short-term debt instruments will continue.
Another reason for which government is unable to achieve targets set for T-bills auction is as a result of the government not being able to close a deal with the IMF following weeks of negotiations in Washington DC. A deal secured from the IMF would have boosted investor confidence in the economy.
In last week’s T-bills auction, government missed its auction target by GHS 252m.
Attempt by the government to secure some GHS 1.56bn from the auction of the 91 day and 182 day treasury bills on Friday, October 21, proved unsuccessful.
Government in the said auction, raised some GHS 1.30bn falling behind its auction target by GHS 252m.
Bids tendered for the 91 day bill was GHS 1.14bn with government accepting all bids tendered.
For the 182 day bill, bids tendered amounted to GHS 167m with government once again accepting all bids tendered.
The two short term debt instruments were issued at interest rates of 32.6% and 34.3% respectively.
Government, in its next auction – November 4 – is aiming at raising some GHS 1,316 million from the issuance of the 91, 182 and 364 day bills.
