Government misses out massively on ambitious treasury bill target

The government missed out on its ambitious treasury bill target for this week.

It borrowed GH¢3.45 billion from its latest treasury bill auction to be issued on August 18, 2023.

According to the results, the government failed to meet the set target of GH¢3.966 billion.

Interest rates have also remained high inching up to 31% in the latest auction.

The continuous increase in the interest rate will make maturities expensive for the government to fulfill.

This week, all bids from the 91-day, 182-day, and 364-day bills were accepted.

According to the results from the Bank of Ghana, interest rates have increased to 31% for the 364-day bill.

Whereas from the 91-day and 182-day bills, interest rates have increased to 26.7% and 27.88% respectively.

The 91-day bill saw a total subscription of GH¢1.63 billion, GH¢1.69 billion was accepted from the 182-day bill and GH¢126.67 million was accepted from the 364-day bills.

The government expects to borrow a whopping GH¢3.053 billion from its next auction.

SSD/NOQ

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