The government failed to meet its treasury bills target for the 7^th consecutive week, as investors want higher interest rates.

According to the auction results by the Bank of Ghana, the government recorded about 10% undersubscription of its auction target, higher than the previous week. The continuous undersubscription of the short-term instruments by the government is a cause for concern.

Investors bought T-bills worth a little over GH¢4.48 billion, as against a target of GH¢4.89 billion. It, however, accepted about GH¢4.0 billion of the bids.

The 91-day bill was once again the most subscribed bill as GH¢1.89 billion of the bids were tendered, representing 42.2% of the total bids. The uptake was, however, GH¢1.88 billion.

The 364-day bill also recorded bids of about GH¢1.8 billion. The bids accepted were a little above GH¢1.7 billion.

For the 182-day bill, GH¢ 764.25 million of the bids were tendered. All the bids were accepted.

Meanwhile, interest rates continued to rise, but at the longer end of the curve.

The yield on the 91-day bill, however, remained unchanged at 4.92%.

That of the 182-day bill also went up to 6.97% from the previous week’s 6.96%.

Similarly, the yield on the 364-day bill inched up by 7.0 basis points to 10.19%.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	1.89bn	1.88bn
182 Day Bill	764.25m	764.24m
364 Day Bill	1.82bn	1.78bn

Total	4.48bn	4.43bn
Target	5.009bn

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Treasury bills auction: Government fails to meet target for 7th week in a row; interest rates rising fast

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