The government has once again fallen short of its target in the sale of short-term instruments to domestic investors, missing the mark by approximately GH¢1.26 billion.
According to the latest data from the Bank of Ghana, investors showed reduced interest in Treasury bills during the most recent money market auction, submitting bids totaling GH¢5.3 billion against a target of GH¢6.55 billion.
The majority of bids were for the 91-day bills, with all GH¢4.1 billion tendered being accepted. Additionally, the government received and accepted total bids worth GH¢967 million for the 182-day bill, and all bids for the 364-day bill, amounting to GH¢231.14 million, were also accepted.
Despite these figures, the total amount sold in this auction was undersubscribed by about 19.15%, as interest rates continued to hover between 24% and 27% on the money market.
Interest rates saw a slight increase due to tightening liquidity, with the yield on the 91-day bill rising to 24.825%, up from 24.820% the previous week. The 182-day bill’s yield increased marginally to 26.764% from 26.76%, while the 364-day bill saw a slight uptick to 27.857% from 27.85%.
Market analysts attribute this trend to the government’s large auction targets and its decision to maintain stable yields in recent weeks to reduce future debt servicing costs. Looking ahead, the treasury plans to increase its borrowing target to GH¢4.97 billion in the next T-bill auction.
