T-Bills: Gov’t exceeds auction target by GHS 487m after weeks of undersubscription
Government, has for the first time in four weeks, exceeded its auction target set for the issuance of the 91 day and 182 day treasury bills.
Government’s short term debt instruments were first undersubscribed – after months of oversubscription of T-bills – on October 21, when it failed to secure a programme from the IMF after weeks of negotiations in Washington DC.
Securing a deal with the IMF would have boosted the confidence of both local and foreign investors in the Ghanaian economy.
In the said T-Bills auction, government fell below its auction target by GHS 252m.
In the second, third and fourth auctions, government fell below its targets by GHS 424m, GHS 81m and GHS 84m respectively.
In the recent auction, government exceeded its target by some GHS 487m mobilising bids totaling GHS 1,655m as against the target of GHS 1,168m.
Bids tendered for the 91 day and 182 day bills were GHS 1,381m and GHS 274m with government accepting all bids tendered in.
The 91 day and 182 day bills were auctioned at high interest rates of GHS 35.5% and 36.2% respectively.
In the next auction – 91, 182 and 364 days T-Bills – government will once again be seeking to raise a total of GHS 2,176m from the domestic debt market.
