Fixed Income Market: Gov’t falls short of auction target by GHS 224m
Government, fell short of achieving the set GHS 1bn target in the issuance of the 91, 182 and 364 days treasury bills on the fixed income market.
Government, in auctioning the short term debt instruments managed to secure only GHS 776m out of the targeted GHS 1bn.
At the auction, offers tendered were below Government’s target and accepted bids were also below the tendered bids as GHS 771 million was raised in 91-Day Bills, GHS 50 million in 182-Day Bills and GHS 14 million in the 364-Day Bills.
Government’s inability to achieve its set targets for T-Bills auction can be attributed to a number of a factors with the first being a tightening of liquidity on the interbank market and the second being the disinterest of investors in the short term instruments given the high rate of inflation which currently stands at 19.4% – the high inflation rate will “eat away” the interest rates on the T-Bills.
| BREAKDOWN OF TOTAL AMOUNT RAISED THIS WEEK | ||
| Treasuries | Bids Tendered (GH¢ MN) | Bids Accepted (GH¢ MN) |
| 91-Day T-Bill | 721.51 | 711.51 |
| 182-Day T-Bill | 50.99 | 50.99 |
| 364-Day T-Bills | 15.09 | 14.09 |
| TOTAL | 787.59 | 776.59 |
| RESULTS OF LAST WEEK’S TREASURY BILL AUCTION | |||
| GOG Treasuries | Current | Previous | Change |
| 91-Day T-Bills | 16.33% | 15.74% | 0.588% |
| 182-Day T-Bills | 16.32% | 15.93% | 0.389% |
| 364-Day T-Bills | 18.85% | 18.27% | 0.578% |
The target for the next auction (Tender #1795) is GH¢766.00 million in 91-Day Bills, 182-Day Bills and 364-Day Bills.
Peruse document below:
Fixed Income Market Report_19.04.2022 by Fuaad Dodoo on Scribd
