T-bills: Government fails to meet auction target, gets GH¢2.78 billion

Government secured GH¢2.78 billion from the sale of treasury bills in its latest auction on May 15, 2023.

The target for the auction was GH¢3.33 billion.

Even though this was a bit higher than what the government got last week, it was GH¢550 million short of the target.

Interest rates have also slightly increased to an average of

Read full articlebetween 20.43 percent to 27.59 percent.

According to the auction results from the Central Bank, the government secured GH¢2.31 billion from the 91-day bill, GH¢355.26 million from the 182-day bill, and GH¢115.60 million from the 364-day bill.

Interest rates, however, increased from 20.25 percent to 20.43 for 91-day bills from 22.82 percent to 22.96 percent for the 182-day bill, and from 27.36 percent to 27.59 percent for the 364-day bill.

According to reports, this week’s bills were to be used to refinance maturities worth GH¢2.31 billion and also to settle coupon payments of the pension bondholders.

Meanwhile, there have been calls for the government to use treasury bills to pay pensioner bondholders. The pensioners have been calling on government to pay their coupons and principals following the completion of the debt exchange programme.

The Pensioner Bondholders Forum have now decided to suspend picketing at the Ministry of Finance after they reached an agreement with the government.

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SSD/MA