T-bills auction: Government fails to meet target again; interest rates still surging

The government’s heavy borrowing on the treasury market triggered another marginal under-subscription of Treasury bills sales by about 7.21%, as interest rates continued to surge.

This is the third week running that the government has failed to meet its T-bills target because of the heavy borrowing on the financial market.

The government was looking to rope in ¢3.43 billion cedis but got about ¢3.18 billion.

According to the auction results, it received bids of about ¢2.03 billion from investors for the 91-day T-bill, which it accepted about 99% of the bids.

It also accepted about 99% of the bids tendered for the 182-day T-bill. A little above ¢874 million was tendered for that financial instrument.

For the 364-day T-bill, the government accepted all the bids worth ¢274.45 million.

Meanwhile, interest rates continued to surge along the yield curve.

The yield on the 91-day T-bill went up by 0.23% to 20.79%, whilst that of the 182-day T-bill increased to 23.62%, from 23.35% the previous week.

The 364-day T-bill also went for 28.01%.