T-Bill auction sees 22% undersubscription amid falling yields

Last week’s Treasury bill auction ended in an undersubscription, with total demand falling 22.12% short of target.

The result breaks a streak of three consecutive oversubscriptions and follows a sharp drop in the interest rate offered on the 56-day Bank of Ghana (BoG) bill.

According to the latest BoG data, the government sought to raise GHS 8.58 billion but secured GHS 6.69 billion. Out of GHS 5.02 billion in bids for the 91-day bill, GHS 4.99 billion was accepted.

For the 182-day bill, GHS 1.23 billion was taken from GHS 1.37 billion in bids, while the 364-day bill recorded GHS 452 million in accepted bids from a total of GHS 490 million.

Analysts say the undersubscription reflects the government’s continued rejection of high-yield bids, alongside increased liquidity flows into the BoG’s Monday and Wednesday auctions, which mobilised about GHS 6.2 billion ahead of Friday’s sale.

Yields on short-term securities continued to edge down, ranging between 10% and 13%. The 91-day bill yield fell by 9 basis points to 10.20%, the 182-day by 10 basis points to 12.25%, and the 364-day by 14 basis points to 13.10%.

The government is targeting GHS 4.24 billion at the next auction.

Comments

Fitch Solutions retains 2025 growth rate projection at 4.2%

Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...

BoG injects $20m into FX market to support 11 BDCs

The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...

Kofi Ahovi

Search This Blog