Government Falls Short of Treasury Bills Target by 16.81% Amid Rising Interest Rates
Government Falls Short of Treasury Bills Target by 16.81% Amid Rising Interest Rates
- The government has fallen short of its ambitious treasury bills target by 16.81%
- This auction follows a legal challenge filed by a private practitioner at the Supreme Court
- Interest rates have risen for the fourth consecutive week
The government has fallen short of its ambitious treasury bills target by 16.81%, securing GH¢5.180 billion instead of the projected GH¢6.228 billion, according to auction results from the Bank of Ghana.
This auction follows a legal challenge filed by a private practitioner at the Supreme Court aimed at halting the government’s issuance of T-bills.
All bids submitted during the auction were accepted, with the majority coming from the 91-day bill, which garnered GH¢3.942 billion, accounting for 76.1% of total bids.
The 182-day bill received approximately GH¢653.43 million in tenders, while the 364-day bill attracted just over GH¢584 million.
Interest rates have risen for the fourth consecutive week, which will increase the cost of servicing these domestic instruments.
The yield on the 91-day bill climbed by 14 basis points to 26.96%, while the interest rate on the 182-day bill rose to 27.78%, up from 27.67% the previous week. The yield for the 364-day bill also increased by 3 basis points to 29.21%.
