T-Bills: Gov’t exceeds target by GHS 198m

Government secured a total of GHS 1,915 million in funds from the auction of the 91, 182 and 364 days treasury bills.

The secured amount was some GHS 198m more than the programmed auction target of GHS 1,717m.

The oversubscription of the short term debt instruments can be attributed to the easing of liquidity on the interbank market.

Bids for the 91, 182 and 364 days T-Bills amounted to GHS 1,529 million, GHS 261 million and GHS 147 million respectively with government accepting bids worth GHS GHS 1,520 million, GHS 248 million and GHS 147 million respectively.

The GHS 1,915 million secured by government however, came at increased interest rates.

The 91, 182 and 364 days T-bills were auctioned at interest rates of 30.1%, 31.2% and 31.5% respectively, making it more costly for government to service its domestic debts.

Despite the increased interest rates on government’s short term debt instruments, returns on these instruments are negative given that their interest rates fall below the country’s headline inflation of 33.9%.

In the next auction, government is seeking to raise GHS 1,331 million in the sale of the 91 and 182 days treasury bills.

Auctresults-1816 by Fuaad Dodoo on Scribd

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