Undersubscription deepens in latest T-Bill auction

The government for the third week running, failed to meet its treasury bills target of GH¢4.63 billion.

In  the auction results issued by the Bank of Ghana (BoG), the government recorded 32.19 per cent undersubscription of its auction target, a higher deficit than the previous week.  

According to results, the government received bids for GH¢3.16 billion as against a target of GH¢ 4.63 billion. It, however, accepted GH¢2.84 billion of the bids.

The most subscribed bill was the 91-day bill, as GH¢2.02 billion of the bids were tendered, representing 63.8 per cent of the total bids. However, the uptake was GH¢1.99 billion.

The 364-day bill recorded bids of about GH¢648 million. The uptake was GH¢416.93 million.

For the 182-day bill, GH¢498.9 million of the bids were tendered. The bids accepted were GH¢416.9 million.

Meanwhile, interest rates continued to increase again on the yield curve in the ween under review.

The yield on the 91-day bill remained relatively unchanged at 4.81 per cent.

That of the 182-day bill also went up to 6.71 per cent from the previous week’s 6.62 per cent.

Similarly, the yield on the 364-day bill inched up by 7.0 basis points to 9.84 per cent.