T-bills auction: Government misses target again, but interest rates ease

For the seventh consecutive week, the government missed its auction target for treasury bills.

According to the auction results by the Bank of Ghana, the government missed its target by a marginal 1.66 percent.

The government got GH¢5.203 billion from a target of GH¢ 5.319 billion.

All the bids tendered for the short-term instruments were accepted. GH¢3.725 billion, representing 71.23% were tendered for the 91-day bill.

The uptake for the 182-day T-bill was however GH¢1.251 billion. It represented about 23.93% of the total bids.

For the 364-day bill, GH¢252.74 million were tendered.

Meanwhile, interest rates eased across the yield curve in line with an anticipated decline due to the falling rate of inflation.

The yield on the 91-day bill declined by 6.0 basis points to 24.78%.

The interest on the 182-day bill also dipped to 26.68%, from the previous week’s 26.74%.

Again, the yield on the 364-day bill also declined by 4.0 basis points to 27.81%.