Gov’t achieves T-Bills target after months of under-subscription
Government, in its auction of the 91-day and 182-day Treasury bills last Friday, June 3, 2022, secured GHS 1.395 billion, some GHS 167m more than the targeted GHS 1.228 billion.
The Treasury bills were oversubscribed by 14% following months of under-subscriptions.
According to the auctioning results, the 91-day bill was the financial instrument highly patronised, but at an interest cost of 22.57%.
Some GHS 1.22 billion was mobilised from the sale of the short term instrument.
On the other hand, GHS 172.9 million was secured from the 182-day T-bills, but at an interest rate of 24.41%.
“I don’t see much room to increase liquidity on the market in the near term because for as long as inflation continues to go up, the Central Bank cannot release liquidity on the market. This is because further liquidity on the market will only push inflation further up”.
“Because the Central Bank core mandate is to maintain price stability that means that in the interim we will have to prioritise the quest to restore low inflation. And to achieve that it requires keeping a firm grip on money supply”, stressed Currency Analyst, Courage Martey.
According to him, he’s unsure whether there will be regular oversubscription of T-bills sale going forward.
| Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
| 91 Day Bill | 1.222 billion | 1.222 billion | 22.574% |
| 182 Day Bill | 172.96 million | 172.96 million | 24.410% |
| Total | 1.395 billion | 1.395 billion | |
| Target | 1.228 billion |
