ACCRA – Ghana’s Treasury bills primary auction last week experienced another undersubscription, with investor demand falling significantly short of the government’s target of GHS 6.67 billion. The government ultimately accepted GHS 4.37 billion from a total offer of GHS 5.47 billion.
According to results released by the Central Bank, bids amounting to GHS 1.09 billion were rejected despite the auction falling short of its target by 34.39%. In the breakdown of accepted bids, GHS 2.65 billion was secured for the 91-day bill against an issuance of GHS 3.50 billion. The 182-day bill saw GHS 1.67 billion accepted from an offer of GHS 1.81 billion, while only GHS 48 million in bids were accepted for the 364-day bill from an offer of GHS 157 million.
This selective acceptance strategy continued to contribute to a decline in interest rates across various tenors, with yields generally averaging between 14% and 15%. Specifically, the 91-day yield remained steady at 14.79%. The rate for the 182-day bill eased by three basis points to 15.46%, and the 364-day bill saw a decline of 11 basis points, settling at 15.80%. For the upcoming auction, the government aims to raise GHS 7.58 billion.
Sankofaonline
