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Government misses treasury bills target by 12.91 percent as interest rates surge

At last week’s auction, the Government of Ghana’s Treasury Bill (T-bill) offer of GHS 3.96 billion spanning 91-day to 364-day bills fell short of around 12.91 percent.

The offer drew total bids of GHS3.45 billion, with the Treasury receiving around 87 percent of the bids at GHS3.96 billion.

According to the results published by the Bank of Ghana, the aggregate bids from investors amounted to 3,453.63 billion against the government ‘s target of issuance size of 3, 966.00 billion.

This represents a 12.91 percent undersubscription.

From the three-month financial instrument, the government received and accepted GH¢1,632.49.

Bids tendered and secured from the 182-day bill were GH¢1,694.47 and the 364-day bill was also tendered at GH¢126.67 and the government did the same.

Despite the under-subscription, interest rates continued to surge on the money market.

The yield on the 91-day bill increased by 0.61% to 26.70%.

The 182-day bill reached 27.88%, up from 27.59% the previous week.

The one-year bill also inched up by 0.39% to 31.08%.

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