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Treasury bill sales fall short again due to government’s extensive borrowing and rising interest rates

December 11, 2023
Treasury bill sales fall short again due to government's extensive borrowing and rising interest rates
Treasury Bill

Government faces another setback in its Treasury bill sales as borrowing on the treasury market resulted in a marginal under-subscription of about 7.21%. The continuous surge in interest rates contributed to this outcome.

For the third consecutive week, the government fell short of meeting its T-bills target due to its extensive borrowing activities in the financial market. The initial goal was to secure ¢3.43 billion cedis, but only ¢3.18 billion was obtained.

During the auction, investors submitted bids of around ¢2.03 billion for the 91-day T-bill, and the government accepted approximately 99% of these bids. Similarly, about 99% of the tendered bids for the 182-day T-bill were accepted, amounting to slightly over ¢874 million.

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

However, interest rates continued to climb along the yield curve. The yield on the 91-day T-bill rose by 0.23% to 20.79%, while the 182-day T-bill increased to 23.62% compared to the previous week's 23.35%.

Furthermore, the 364-day T-bill recorded a yield of 28.01%.

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