Undersubscription of T-Bills continues for third straight week
Undersubscription of government treasury bills continues as government, in its latest T-Bills auction, failed to secure its target of GHS 1,316m.
Some GHS 1,235m were tendered as bids for the short term debt instruments (91, 182 and 364 day) by primary dealers, with the secured amount falling behind the auction target by some GHS 81m.
Bids tendered for the 91 day, 182 day and 364 day treasury were GHS 1,073m, GHS 141m and GHS 21m respectively.
Government accepted all bids tendered for the short term debt securities.
The short term debt instruments were issued at interest rates of 33.8%, 35.2% and 35.3% respectively.
This is the third time in a row that government has failed to achieve auction targets for its treasury bills.
The first time was on October 21 when subscription of T-Bills fell by GHS 252m below the auction target.
The second was on October 28 when government once again fell short of its auction target by GHS 424m.
The trend in undersubscription of government treasury bills begun when government failed to secure a deal with the IMF after weeks of negotiations in Washington DC.
Securing a deal with the IMF would have boosted investor confidence to invest in government’s short term debt instruments.
