Government misses T-bills target again, interest rate at 35.4%

The Government of Ghana’s weekly Treasury bills has been undersubscribed again.

This will be the fifth consecutive time the government has missed its target of the auction of Treasury bills this year.

However, interest rates have kept rising even though it is still below the current inflation rate.

The target for the November 11 auction was GH¢2,060 million but the government secured GH¢1977.41 million.

The interest rate for the 91-day bills stood at 34.39%. For the 182-day bill, interest rates stood at 35.49% whiles the interest rate for the 364-day bill stood at 35.07%.

The 91-day treasury bills received GH¢1.827.52 million bids whiles the 182-day treasury bills received bids worth GH¢142.03 million of which all bids were accepted.

The 364-day T-bills received GH¢7.86.

The latest data from the Ghana Statistical Service showed that Ghana’s current inflation stands at 40.4% signifying a negative return on the investment. Meanwhile, the government is targeting GH¢1,168 million in its next auction.

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