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The Treasury bill auction that took place last week came to an end without enough bids, with total demand falling 22.12% short of the target.
The outcome comes after a sharp drop in the interest rate offered on the 56-day Bank of Ghana (BoG) bill, breaking a streak of three consecutive oversubscriptions. The government attempted to raise GHS 8.58 billion, but only obtained GHS 6.69 billion, according to the most recent BoG data.
For the 91-day bill, GHS 4.99 billion was accepted out of 5.02 billion bids. For the 182-day bill, GHS 1.23 billion was taken from GHS 1.37 billion in bids, while the 364-day bill recorded GHS 452 million in accepted bids from a total of GHS 490 million.
The government’s continued rejection of high-yield bids, according to analysts, is reflected in the undersubscription, as are increased liquidity flows into the BoG’s Monday and Wednesday auctions, which brought in approximately GHS 6.2 billion in advance of Friday’s sale.
Between 10% and 13%, short-term securities’ yields continued to decline. The 91-day bill yield decreased 9 basis points to 10.20 percent, the 182-day yield decreased 10 basis points to 12.25 percent, and the 364-day yield decreased 14 basis points to 13.10 percent.
The government is targeting GHS 4.24 billion at the next auction.
Source: myghanadaily
