The government has missed its ambitious treasury bills target by GH¢2.670 billion.
According to auction results from the Bank of Ghana, the government recorded an undersubscription of 35.90% from the sale of short-term instruments.
The government raised GH₵4.7 billion through short-term instruments against a target of GH₵7.4 billion.
This means liquidity in Ghana’s money market remains constrained. The government was seeking to raise an ambitious GH¢7.438 billion to settle maturing debt and finance projects.
However, it only managed to raise 64.1% of the total targeted amount. All the bids submitted for the short-term instruments were accepted. About GH¢2.59 billion came from the 91-day T-bills, representing 54.5% of the total bids.
The 91-day treasury bill garnered the highest level of interest, with all GH₵2.59 billion tendered being accepted. The 182-day bill attracted about GH₵830 million in bids, while the 364-day bill accounted for GH₵1.3 billion.
Yields on treasury bills saw a slight uptick, with interest rates ranging between 25% and 28%. The 182-day bill also increased to 26.92% from the previous week’s 26.81%. That of the 364-day bill inched up by 66 basis points to 28.67%.
Market analysts attribute this trend to the high auction target, combined with ongoing liquidity challenges in the market.
The Treasury is expected to raise its borrowing target to GH₵5.98 billion in the upcoming T-bill auction.
Source: citinewsroom and myjoyonline
