Ghana's government raised GHS1.92 billion at its latest Treasury bill auction, falling GHS529.27 million, or 21.6%, short of its GHS2.45 billion target.
The shortfall came even though investors offered more than the government wanted. Bids at Tender 2031, held on 30 October, totalled GHS2.55 billion, about 4.1% above the target, according to auction results published by the Bank of Ghana and reported by NorvanReports. The government turned down GHS630.21 million of the bids.
The 91-day bill did most of the work. Investors bid GHS1.51 billion and GHS1.23 billion was accepted, about 64% of all the money raised. Its weighted average interest rate was 4.60%.
The 182-day bill drew GHS423.74 million in bids, of which GHS395.74 million was accepted, at an interest rate of 6.26%. The 364-day bill saw the biggest cut: investors offered GHS613.83 million, but only GHS292.12 million, less than half, was accepted at 9.60%.
Rates edged down from the previous week. At Tender 2030, the 91-day bill cleared at 4.61%, the 182-day at 6.29% and the 364-day at 9.67%, Bank of Ghana data show. Some one-year bids sought discount rates as high as 11.50%, well above the 8.84% top rate allotted in full, which suggests the government chose to keep borrowing costs down rather than take all the money on offer.
The bills will be issued on Monday, 2 November.