The recent treasury bills auction by the government faced an undersubscription, indicating low demand for the short-term instruments. The Bank of Ghana reported that the auction saw a marginal undersubscription of 2.45% compared to a marginal oversubscription in the previous week. The total amount garnered from the T-bills sale was GH¢6.444 billion, with GH¢1.814 billion of bids being rejected, falling short of the estimated target of GH¢6.607 billion.
Among the bids tendered, GH¢5.058 billion were for the 91-day bill, accounting for 78.49% of total bids. However, only GH¢3.67 billion of these bids were accepted. For the 182-day bill, GH¢905 million were tendered, with an accepted bid amount of GH¢630.45 million. Additionally, over GH¢481 million were tendered for the 364-day bill, out of which GH¢324.56 million were accepted.
Despite the undersubscription, interest rates on the yield curve remained relatively stable. The yield on the 91-day bill stayed constant at 15.45%, while the 182-day bill saw a slight decrease to 16.18% from 16.21% in the previous month. The interest rate on the 364-day bill also dropped by 3 basis points to 18.62%.
In summary, the auction results reflect a lukewarm response to the treasury bills, with overall bids falling short of the target amount. The stability in interest rates suggests a cautious approach from investors. As the government continues to navigate economic challenges, monitoring the demand for T-bills will be crucial in assessing market sentiment and investor confidence.
