T-bills: Interest rates increased for first time since January 1; government fails to meet target

Interest rates increased for the first time across the yield curve since January 1, 2024.

According to auction results by the Bank of Ghana, the rates on the 91-day, 182-day and 364-day bills all shot up.

The yield on the 91-day bill went up by 9.0 basis points to 25.73%.

That of the 182-day bill also rose to 28.22%, from the previous week’s 28.14%.

The 364-day bill also increased by 34 basis points to 28.83%.

Indeed, liquidity on the money market appears to be tightening following uncertainties regarding the government debt restructuring with Eurobond holders.

Meanwhile, the government failed to meet its T-bills target by 8.8%. It got GH¢2.560 billion as against a target of GH¢2.808 billion.

The 91-day bill was however the most patronised financial instrument. GH¢2.023 billion, representing 80.72% were tendered, and all were accepted.

This was followed by the 182-day bill in which GH¢ 417.58 million was tendered and the uptake was the same.

The 364-day bill saw GH¢ 120.09 bids tendered. All the bids were accepted.

 

SECURITIES BIDS ACCEPTED (GH¢) BIDS ACCEPTED (GH¢)

91 Day Bill 2.023 billion 2.023 billion

182 Day Bill 417.58 million 417.58 million

364 Day Bil 120.09 million 120.09 million

 

Total 2.560 billion 2.560 billion

Target 2.808 billion