The government of Ghana has once again fallen short of its treasury bills target for the third consecutive week, as investors continue to show a preference for high-yielding instruments like fixed deposits. The latest auction results from the Bank of Ghana reveal that the government’s T-bills were undersubscribed by nearly 10%.
Out of the total bids tendered amounting to GH¢5.817 billion, only GH¢5.754 billion was accepted by the Treasury. Once again, the 91-day bill received the majority of the bids, with GH¢4.049 billion tendered, representing 69.61% of the total bids. The uptake for this bill was GH¢4.029 billion.
For the 182-day bill, GH¢1.337 billion worth of bids were tendered, of which GH¢1.327 billion was accepted. The 364-day bill saw bids amounting to GH¢430.38 million, with only GH¢397.82 million accepted.
Interestingly, while the yields on the 91-day and 182-day bills saw an increase, the yield on the 364-day bill experienced a slight decline. The yield on the 91-day bill rose by 28 basis points to 10.41%, while the 182-day bill saw an increase to 12.38% from 12.23% the previous week. On the other hand, the yield on the 364-day bill decreased by 8.0 basis points to 13.00%.
This trend suggests that investors are seeking higher returns on their investments, leading them to opt for alternatives to treasury bills. The government will need to reassess its strategy to attract more interest in its T-bills in the coming weeks.
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