T-bills auction: Government records 22% undersubscription, but at lower interest rates

The government recorded a 22% decline in its treasury bills target to GH¢4.33 billion.

This, however, came with lower interest rates.

According to the Bank of Ghana auction results, the auction target was GH¢5.57 billion, but the bids accepted by the government were GH¢3.4 billion, lower than the targeted amount.

A little over GH¢2.7 billion of the bids came from the 91-day bill, representing 63% of the total bids. The uptake was about GH¢2.51 billion.

The 182-day bill also received bids of about GH¢721.62 million. However, GH¢596.62 million was accepted.

About GH¢873 million of the bids were tendered for the 182-day bill. A little above GH¢344 million of the bids were accepted.

Meanwhile, interest rates went down along the yield curve.

The yield on the 91-day bill declined by a basis point to 4.55%.

However, the 182-day bill declined by 4.0 basis points to 6.16% from the preceding week’s 6.20%.

Also, the yield on the 364-day bill eased by 2.0 basis points to 9.46%.

| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |

| 182 Day Bill | 721.62m | 596.62m |

| 364 Day Bill | 873.41m | 344.81m |