Ghana’s Treasury bill auction has once again fallen short of its target, with the government missing its goal by a significant margin. According to the latest auction results from the Bank of Ghana, the government received GH¢6.12 billion in bids, but this was 22.82% short of the target of GH¢7.525 billion.
Breakdown of the Auction Results
– 91-Day Bill: GH¢3.71 billion in bids were tendered, with GH¢3.633 billion accepted. The yield on this bill increased by 9.0 basis points to 14.65%.
– 182-Day Bill: GH¢814.85 million in bids were tendered, with GH¢804.09 million accepted. The yield on this bill rose to 15.02% from 15.01% the previous week.
– 364-Day Bill: GH¢1.60 billion in bids were tendered, but only GH¢100.99 million was accepted. The yield on this bill increased by 25 basis points to 15.41%.
Implications and Future Plans
This marks the seventh consecutive week that the government’s T-bill auction has failed to meet its target. The undersubscription signals the government’s attempts to moderate borrowing costs, even as investors demand higher yields amid competing instruments. The government will return to the market soon, seeking to raise GH¢6.72 billion in its next auction.