For the sixth consecutive auction, the government has missed its Treasury bills target, with an undersubscription of approximately 6.91%.
Recent data from the Bank of Ghana shows that investor interest in Treasury bills remains relatively low. The latest auction saw total bids of GHc 4.6 billion, falling short of the GHc 4.9 billion target.
The 91-day bill received a significant portion of the bids, GH3.6 billion, accounting for 78.26% of the total bids and fully accepted. The market also fully accepted bids of GHc 733.59 million for the 182-day bill and GHc 284.92 million for the 364-day bill.
Interest rates in the money market continue to hold steady, ranging from 24% to 27%. Analysts attribute the shortfall to the government’s ambitious auction targets and tight liquidity conditions, further exacerbated by recent changes in cash reserve ratio requirements.
The government has informed the International Monetary Fund that its immediate priority is to issue sufficient Treasury bills to address the deficit.
In the near term, debt management will focus on securing adequate domestic financing before pursuing structural market improvements.
Source:Citinewsroom
