T-Bills auction target missed as bids fall by 39.5%
Government failed to achieve its target of raising some GHS 766m in the issuance of the 91 and 182 day treasury bills.
Government in the issuance of the 91 and 182 day T-Bills (Tender 1792) managed to secure some GHS 463m from banks, insurance and pension firms involved in the auction.
By failing to achieve its auction target, government lost some GHS 303m (39.5%) in bids that would have otherwise accrued to it had it attained the GHS 766m target.
It is surprising the government failed to secure all the GHS 766m given the increased interest rates on the treasury bills and the recent hike in the policy rate by the Bank of Ghana (BoG).
According to auction results released by the Central Bank, interest rate on the 91 day T-Bill was 14.8%, whereas that of the 182 day T-Bill was 15.4%.
In the previous auction, interest rates on the 91 and 182 day T-Bills were 14.1% and 14.5% respectively.
Government also in the previous auction failed to meet its target of raising some GHS 2.2bn in the auction of the 91, 182 and 364 days T-Bills.
Cumulatively, government was able to only mobilise GHS 1.4bn out of the GHS 2.2bn target.
Possibly, a tightening of liquidity on the interbank market can be said to be responsible for government’s inability to achieve its auction targets.
Read details of auction results below:
Auctresults-1792-1 by Fuaad Dodoo on Scribd
