In its latest Treasury bill auction, the Ghanaian government has missed its target by GH¢2.8 billion, marking the first shortfall this year. The government set out to raise GH¢6.14 billion through short-term instruments, but only GH¢3.32 billion was raised, reflecting a 45% undersubscription. Despite this, the authorities opted to reject GH¢1.67 billion in bids.
A detailed breakdown of the auction reveals mixed results for different bill durations. For the 91-day Treasury bill, GH¢2.33 billion was accepted out of GH¢3.6 billion in bids. The 182-day bill garnered GH¢574 million from a total of GH¢741 million in bids, while the 364-day bill attracted GH¢406 million from GH¢622 million tendered.
Interest rates on the Treasury bills remained largely stable, with slight fluctuations across various tenors. The 91-day bill saw a small decline of 15 basis points to 15.73%, while the 182-day bill held steady at 16.93%. The 364-day bill, however, saw a significant rise of 87 basis points to 18.85%. These rate movements suggest market adjustments, with analysts noting a trend toward yield equilibrium.
Looking ahead, the government plans to raise GH¢5.64 billion in the next Treasury bill auction. Analysts suggest that the undersubscription was expected, given the gradual decline in bids observed over the past two weeks, signaling that market demand and supply are beginning to stabilize.
source: citi newsroom