Government falls short of Treasury Bills target amid weak investor demand
The government fell short of its treasury bills target last week after investor demand for the short-term securities came in below expectations.
Results released by the Bank of Ghana showed that the auction was undersubscribed by 5.9%.
According to the data, investors submitted bids totaling slightly above GH¢4.21 billion against the government’s target of GH¢4.48 billion. Of the total amount tendered, approximately GH¢3.9 billion was accepted.
The 91-day treasury bill recorded the strongest investor interest, attracting bids worth GH¢2.52 billion, which accounted for nearly 60% of the total bids submitted. The government accepted about GH¢2.51 billion of the amount tendered.
The 182-day bill received bids valued at GH¢877.72 million, with a little over GH¢723 million accepted.
For the 364-day bill, investors submitted bids amounting to GH¢817.12 million, out of which about GH¢699 million was accepted.
Meanwhile, interest rates declined across the yield curve.
The yield on the 91-day bill dropped by 1.0 basis point to 4.91%, while the 182-day bill remained unchanged at 7.04%.
The 364-day bill also recorded a decline in yield, falling by 2.0 basis points to 10.37%.
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