Latest data from the Treasury shows that investor demand for Treasury bills weakened last week as the government fell short of its target by 2.11 billion cedis.
Figures from the Bank of Ghana revealed that the Treasury accepted 3.46 billion cedis in bids, against a target of 5.58 billion cedis. This represented a shortfall of 37.5 per cent.
The 91-day bill attracted the bulk of demand. The Treasury accepted 2.65 billion cedis, almost the entire 2.66 billion tendered.
The 182-day bill followed, with 695 million cedis accepted out of 705 million submitted. Meanwhile, 116 million cedis was cleared on the 364-day note, from the 119 million tendered.
Analysts attributed the undersubscription to weak liquidity among commercial banks, following the Bank of Ghana’s open market operation that absorbed nearly ¢19 billion ahead of the auction. They also pointed to persistently low appetite for T-bills.
The shortfall pushed yields slightly higher across the curve. The 91-day bill rose 5 basis points to 10.50 percent from the 10.45 per cent, the 182-day went up 3 basis points to 12.39 percent up from the 12.36 per cent, and the 364-day edged up 1 basis point to 12.89 per cent from the 12.88 percent the previous week
Looking ahead, the government aims to raise 3.71 billion cedis in this week’s auction.
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