Weekly T-bill Auction: Gov’t exceeds target by only 0.7%; raises GH¢ 3.21bn at lower rates

The Government of Ghana at last Friday’s bidding of treasury bills exceeded its target by only 0.7%, recorded its lowest subscription rate in weeks as interest rates once again fell marginally.

Tender 1903 of its weekly auction of treasury bills held on 17th May 2024 of securities to be issued on 20th May 2024 raised GH¢ 3.212bn, just GH¢ 25.12m higher than the total target of GH¢ 3.187bn for the 91, 182 and 364-day t/bills.

Government at the end of the auction accepted all bids tendered comprising GH¢ 2.493.30, GH¢ 636.63 million and GH¢ 82.19 million worth of 91, 182 and 364-day bills respectively.

Last Friday’s results represent a significant fall in performance after Government in its previous auction, tender 1902, on May, 10, recorded an oversubscription of 33.83% which was an improvement in the 17.07% oversubscription it recorded at the beginning of the month.

Interest rates however have continued their steady decline, with the 91, 182, and 364-day t/bills trading at an average rate of 25.10%, 26.95% and 27.95% respectively, lower than the 25.20%, 27.00% and 29.999% they each auctioned at, a week prior.

Government for the next auction, tender 1904, has set a target of GH¢ 4.865.00 billion.