T-bills Auction: Government misses objective by GH¢1.07 billion; interest rates continue to rise.

The government’s latest Treasury bill auction fell short of its GH¢6.228 billion target, raising GH¢5.180 billion, according to the Bank of Ghana’s auction results. This represents a shortfall of 16.81%.

The auction results revealed that all bids submitted were accepted. The 91-day bill attracted the highest participation, with GH¢3.942 billion in bids, accounting for 76.1% of the total amount raised. The 182-day bill recorded GH¢653.43 million in bids, while the 364-day bill garnered slightly over GH¢584 million.

This auction followed a Supreme Court application filed by a private legal practitioner seeking to halt the government’s issuance of Treasury bills.

Interest rates for Treasury bills continued their upward trajectory for the fourth consecutive week, driving up the cost of servicing domestic debt. The yield on the 91-day bill increased by 14 basis points, reaching 26.96%. Similarly, the 182-day bill rate climbed to 27.78%, up from 27.67% the previous week. The 364-day bill also saw a slight increase, rising by 3 basis points to 29.21%.

The rising interest rates reflect increasing borrowing costs for the government, adding pressure on domestic debt servicing amid ongoing fiscal challenges.