T-bills auction: Government records 2.45% undersubscription, interest rates remain relatively stable

The government recorded an undersubscription of its treasury bills auction, as demand for the short-term instruments remain low.

According to auction results by the Bank of Ghana, the Treasury recorded a marginal undersubscription of 2.45% of the T-bills sale, compared with a marginal oversubscription the prior week.

It got GH¢6.444 billion from the T-bills auction but rejected GH¢1.814 billion of the bids tendered. The target was estimated at GH¢6.607 billion

About GH¢5.058 billion were tendered for the 91-day bill, representing 78.49% of the total bids. The bids accepted were lower at GH¢3.67 billion.

For the 182-day bill, GH¢905 million were tendered. The bids accepted were estimated at GH¢630.45 million.

A little over GH¢481 million were also tendered for the 364-day bill.  About GH¢324.56 million were accepted.

Meanwhile, interest rates remain relatively stable on the yield curve.

The yield on the 91-day bill remained same at 15.45%.

That of the 182-day also eased to 16.18% from 16.21% the previous month.

The interest on the 364-day bill also dropped by 3 basis points to 18.62%.

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