Government has for the first time in four weeks, exceeded its auction target set for the issuance of the 91-day and 182-day treasury bills.
The government’s short-term debt instruments were first undersubscribed – after months of oversubscription of T-bills – on October 21, when it failed to secure a programme from the IMF after weeks of negotiations in Washington DC.
Securing a deal with the IMF would have boosted the confidence of both local and foreign investors in the Ghanaian economy.
In the said T-Bills auction, the government fell below its auction target by GH¢252m.
In the second, third and fourth auctions, government fell below its targets by GH¢424m, GH¢81m and GH¢84m respectively.
In the recent auction, government exceeded its target by some GH¢487m mobilising bids totalling GH¢,655m as against the target of GH¢1,168m.
Bids tendered for the 91 days and 182-day bills were GH¢1,381m and GH¢274m with the government accepting all bids tendered in.
The 91-day and 182-day bills were auctioned at high-interest rates of GHS 35.5% and 36.2% respectively.
In the next auction – 91, 182 and 364 days T-Bills – the government will again seek to raise a total of GH¢2,176m from the domestic debt market.
