Accra: The government failed to meet its treasury bills target last week after demand for the short-term instruments fell below expectations.
According to Ghana Web, the auction results released by the Bank of Ghana revealed an undersubscription by 5.9%. Investors put forward bids totaling slightly over GHS4.21 billion, which was below the target of GHS4.48 billion. Ultimately, the government accepted approximately GHS3.9 billion from the bids.
The breakdown of the bids showed that the 91-day bill was the most sought-after, with investors submitting GHS2.52 billion in bids, accounting for 59.8% of the total. The government accepted roughly GHS2.51 billion from these bids.
For the 182-day bill, bids amounted to GHS877.72 million, with the government accepting a little over GHS723 million. In the case of the 364-day bill, investors tendered bids worth GHS817.12 million, from which about GHS699 million was accepted.
Interest rates experienced a decline across the yield curve. The yield on the 91-day bill saw a reduction of 1.0 basis point, settling at 4.91%, while the 182-day bill's yield remained steady at 7.04%. The 364-day bill's yield decreased by 2.0 basis points, ending at 10.37%.