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BusinessT-bills: Govt fails to meet GHS500m target as interest rates surge

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T-bills: Govt fails to meet GHS500m target as interest rates surge

Government’s latest treasury bill auction results indicate that it fell short of its auction target by GH¢519.76 million.

The auction generated GH¢2.39 billion, which was 17% below the target of GH¢2.93 billion. The target included a sell buy-back of GH¢1.01 billion, set to mature and be rolled over on July 6, 2023, according to the Bank of Ghana.

Also, the auction held on June 30 only involved the 91-day and 182-day bills. Interest rates have been on the rise in recent weeks, reaching 23.95% for the 91-day bill and 25.79% for the 182-day bill.

The majority of the subscriptions came from the 91-day bill, with all bids tendered being received by the government. The 91-day bill received bids totaling GH¢1.90 billion, while the 182-day bill received bids amounting to GH¢486.73 billion.

In the upcoming auction, the government aims to raise GH¢1.57 billion from the 91-day, 182-day, and 364-day bills.

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