Accra: The government has failed to meet its Treasury bill auction target for the sixth week in a row, according to the latest results released by the Bank of Ghana. However, the shortfall was marginal, with the auction being undersubscribed by nearly one percent. The government sought to raise GHS4.47 billion, but total bids tendered by investors amounted to GHS4.43 billion. Out of the total bids received, the government opted to accept approximately GHS3.8 billion.
According to Ghana Web, investor interest remained heavily concentrated in short-term instruments. The 91-Day Bill was the most preferred option, attracting GHS2.75 billion in bids, accounting for 62.1% of the total market interest. The government eventually accepted GHS2.71 billion. For the 182-Day Bill, bids reached GHS717.6 million, with the government accepting GHS664 million. The 364-Day Bill recorded bids of approximately GHS960 million, though the government uptake was significantly lower at GHS522.4 million.
Interest rates showed varied movement across the yield curve. The yield on the 91-day bill saw a slight decrease of 2.0 basis points, settling at 4.92%. Conversely, the 182-day bill rose to 6.96% from the 6.90% recorded the previous week. The rate for the 364-day bill remained stable at 10.12%. The continued undersubscription suggests a slight gap between the government's financing requirements and current investor appetite, even as interest rates fluctuate to find a market balance.