Liquidity in Ghana’s money market remains tight as the government missed its treasury bill target by GH₵2.6 billion in the most recent auction.
According to the Bank of Ghana’s auction results, the government raised GH₵4.7 billion from short-term instruments, falling short of its GH₵7.4 billion target, resulting in an undersubscription of about 35.9%.
The 91-day treasury bill attracted the most interest, with all GH₵2.59 billion tendered being accepted. The 182-day bill secured GH₵830 million in bids, while the 364-day bill brought in GH₵1.3 billion.
Yields on treasury bills saw a slight increase, with interest rates ranging from 25% to 28%.
Market analysts attribute the undersubscription to the high auction target coupled with ongoing liquidity challenges.
The Treasury is expected to raise its borrowing target to GH₵5.98 billion in the next auction.
Source: Adomonline
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