T-bills auction: Government target falls by GH¢1.07bn; interest rates continue to surge

The government missed its ambitious treasury bills target by 16.81%.

According to the auction results by the Bank of Ghana, the government secured GH¢5.180 billion as against a target of GH¢6.228 billion.

This auction is coming after a private legal practitioner filed an application at the Supreme Court to stop the government from issuing T-bills.

The results showed that all the bids were accepted.

The majority of the bids came from the 91-day bill where GH¢3.942 billion, representing 76.1% of the total bids were tendered.

About GH¢653.43 million were however tendered for the 182-day bill.

Similarly, the 364-day bill saw an offer of a little over GH¢584 million.

Meantime, interest rates went up for the fourth consecutive week.

However, the rising interest rates will increase the cost of servicing the domestic instruments.

The yield on the 91-day bill was up 14 basis points to 26.96%.

Equally, the interest rate on the 182-day bill increased to 27.78% from 27.67% the previous week.

That of the 364-day bill was also up by 3 basis points to 29.21%.