T-bills auction: Government misses target for fourth consecutive week

For the fourth consecutive week, the government has missed its treasury bills target as investors towards alternate high-yielding instruments like fixed deposits.

Auction results by the Bank of Ghana reveals that the government Treasury bills were undersubscribed by almost 49%.

The Treasury was only able to receive a total of GH¢3.2 billion of the bids tendered, against the target of GH¢6.7 billion.

This result proves that demand for government securities has fallen sharply in recent weeks.

Majority of the bids came from the 91-day bill, just like the previous week. About GH¢2.05 billion was tendered, representing 58.39% of the total bids. An uptake of was GH¢2.01 billion was recorded.

For the 182-day bill, GH¢1.14 billion bids were tendered. An estimated GH¢1.12 billion bids were accepted.

GH¢321.06 million was tendered for the 364-day bill. About GH¢184 million was accepted.

Meanwhile, the yield across the curve went down.

The 91-day bill decreased by 35 basis points to 10.41%.

That of the 182-day bill went down to 12.37% from 12.38% the previous week.

And the yield on the 364-day bill also decreased by a basis point to 12.99%.