By: Franklin Asare-Donkoh
The Government of Ghana is said to have missed its Treasury Bill (T-Bill) auction target by 34% during last week’s window pricing.
According to auction results released by the Bank of Ghana, the primary auction recorded another under-subscription, with investor demand falling short of the GHS 6.67 billion target.
Despite the shortfall of 34.39%, the Treasury rejected bids worth GHS 1.09 billion and accepted GHS 4.37 billion out of a total offer of GHS 5.47 billion.
Breakdown of the results shows that, out of the GHS 3.50 billion issued for the 91-day bill, GHS 2.65 billion was accepted.
For the 182-day bill, GHS 1.67 billion was accepted from an offer of GHS 1.81 billion, while the 364-day bill recorded GHS 48 million in accepted bids out of GHS 157 million.
The selective acceptance of bids continued to anchor a decline in interest rates across tenors, with yields now averaging between 14% and 15%.
The 91-day yield was maintained at 14.79%. The 182-day rate eased by 3 basis points to 15.46%, while the 364-day bill declined by 11 basis points to 15.80%.
The government is targeting at least GHS 7.58 billion in its next auction.
