T-Bill auction undersubscribed by GHS393m as rates continue to drop

The latest auction results from the Bank of Ghana show that the government fell short of its Treasury bill target by GHS 393 million, reflecting a 5.19% undersubscription.

The government aimed to raise GHS 7.58 billion but received total bids of GHS 7.19 billion.

From a stark contrast of selective acceptance in previous auctions, the Treasury took up nearly all available bids in this round, particularly in the shorter tenors, likely in response to upcoming high maturities.

All GHS 6.02 billion tendered for the 91-day bill was accepted, along with the full GHS 995 million for the 182-day. For the 364-day, GHS 173 million out of GHS 204 million in bids was accepted.

Meanwhile, interest rates continued to decline across the curve. The 91-day rate dropped by 9 basis points to 14.70%, the 182-day fell by 21 basis points to 15.25%, while the 364-day eased by 6 basis points to 15.74%.

Looking ahead, the government is targeting GHS 4.55 billion in the next auction.