The government recorded a marginal shortfall in last week’s Treasury bills auction, securing GHS 5.40 billion in bids against a target of GHS 5.46 billion, resulting in a deficit of GHS 60 million.
This performance marks a reversal from the previous week’s oversubscription of GHS 1.35 billion, signaling a shift in market conditions. Data from the Bank of Ghana (BoG) shows that maturities for the week totaled GHS 5.12 billion.
By tenor, the 91-day bill remained the most attractive, absorbing all GHS 4.02 billion in bids. The 182-day and 364-day bills garnered GHS 867 million and GHS 508 million, respectively. Across the board, yields edged upward.
The 91-day and 182-day bills saw their yields rise by eight basis points each, settling at 27.85% and 28.57%. The 364-day bill yield inched up by one basis point to 29.94%, reflecting increasing borrowing costs.
Market observers attributed the undersubscription to heightened demand in the Bank of Ghana’s separate bill auction, which drew a robust GHS 6.9 billion in uptake.
Looking forward, analysts expect yields to remain high as the central bank continues its contractionary open market operations to control liquidity. The government’s next auction seeks to raise GHS 4.26 billion, providing a fresh test of investor appetite in a competitive market.
READ ALSO: