For the sixth consecutive time, the government has fallen short of its treasury bills target, recording an undersubscription of approximately 6.91% in the latest auction.
According to the latest data from the Bank of Ghana, investor interest in treasury bills remains slightly low. The recent auction saw bids totalling GH¢4.6 billion, falling short of the GH¢4.9 billion targets.
A significant portion of the bids, amounting to GH¢3.6 billion, was directed toward the 91-day bill, representing 78.26% of the total bids, all of which were accepted by the government.
Additionally, bids worth GH¢733.59 million for the 182-day bill were accepted in full, as were bids totalling GH¢284.92 million for the 364-day bill.
Interest rates on the money market continue to hold steady, ranging between 24% and 27%.
However, market analysts attribute the shortfall to the ambitious auction targets set by the government and the tight liquidity conditions, exacerbated by the recent cash reserve ratio directive.
The government has told the International Monetary Fund that its immediate priority remains issuing sufficient treasury bills to finance the government deficit
According to the government, its debt management in the near term will focus on ensuring sufficient domestic financing before focusing on structural market improvements over the medium-term.
