Government T-Bills sale undersubscribed by 39.47% for 2nd week running

Government continues to struggle to raise funds on the domestic treasury market, as Treasury bills sale was undersubscribed by 39.47% to ¢463.65 million.

This is coming despite a further increase in interest rates of the short term securities.

In actual fact, it is the second week running that the weekly sale of the short term securities have failed to meet the target, following the fiscal measures announced by the Finance Minister, Ken Ofori-Atta to revive the economy.

Government had targeted ¢766 million cedis in both the 91-day and 182-day Treasury bills.

According to the auctioning results by the Bank of Ghana, ¢372.04 million was mobilized from the sale of the 91-day T-bills, whilst ¢91.61 million was secured from the auctioning of the 182-day Treasury bills.

The interest rates for the short term securities were quoted at 14.84% and 15.45% respectively, higher than that of the previous sale.

Analysts believe it will take some time before investors react to the government fiscal measures to keep inflation and exchange rate lower and relatively stable.

In that regard, there is no cause for alarm as the treasury market is expected to bounce back soon.

Treasury securitiesBids tenderedBids accepted
91-day Treasury bill¢372.04m¢372.04m
182-day Treasury bill¢91.61m¢91.61m
   
Total¢463.65m¢463.65m

Target : ¢766m

Source: myjoyonline.com

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