Government misses T-bills target by 32% as interest rates rise
Ghana's government missed its GHS4.63 billion treasury bill target by 32% for the third consecutive week. This undersubscription suggests lower investor demand than desired. Interest rates on 182-day and 364-day bills increased, signaling higher borrowing costs for the government.
StatsGH
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Ghana's government has again failed to reach its target for treasury bill sales. For the third week in a row, it did not raise the amount of money it planned. The government aimed to borrow GHS4.63 billion but only received GHS3.16 billion in bids. After review, it accepted GHS2.84 billion. This means the sale was undersubscribed by 32%.
This undersubscription shows that fewer investors wanted to buy the T-bills than the government hoped. When there is less demand, the government might have to offer higher interest rates to attract buyers. This makes borrowing more expensive for the nation.
The 91-day T-bill was the most popular. Bids for this bill were GHS2.02 billion, and GHS1.99 billion was accepted. Its interest rate stayed around 4.81%.
However, interest rates for longer-term bills went up. The 182-day bill yield rose to 6.71% from 6.62% the previous week. The 364-day bill rate also increased by 7 basis points to 9.84%. This trend of rising interest rates means the government pays more to borrow money for longer periods. This impacts public finance and can affect the wider economy.
Tags:T-billspublic debtinterest ratesgovernment borrowingBank of Ghana
