Business

Government misses treasury bills sales target; mobilises ¢729m

Government misses treasury bills sales target; mobilises ¢729m

Government missed its target of ¢1 billion from the sale of 91-day and 182-day treasury bills.

It however mobilized ¢729 million at the end of trading on Friday.

According to results from the auctioning, government accepted all bids tendered for the short term securities.

Over ¢627 million was mobilised from the 91-day treasury bills with an interest rate of 14 per cent.

The yield on the 182-day treasury bill, however, went for 14.12 per cent, slightly higher than the previous week pricing.

The interest rates on the short term securities indicate that investors are still demanding extra yield for the short term government securities.

Investors began demanding more yields in the month of August 2020, when they were actually moving into other risk-free instruments that were giving them more interest than the government treasuries.

Data from the Bank of Ghana indicate that government Treasury securities were priced at a rate of about 13.97 per cent in the better part of the second quarter of this year.

But, this consistently increased to 14.06 per cent at the end of August this year.

The Bank of Ghana meanwhile, is hoping to raise ¢735 million for government in the next auction, which comes off on Friday, September 25.