Treasury Bills miss target as demand slumps 16%

Demand for Treasury bills has declined, with the government failing to meet its target for the first time in several weeks.

According to the Bank of Ghana’s auction results, the Treasury recorded a 16% undersubscription, receiving bids worth GH¢4.17 billion against a target of GH¢5.02 billion. It accepted GH¢3.48 billion of the total bids submitted.

The 91-day bill attracted the largest share of bids, accounting for approximately 70.5% of the total amount tendered.

Investors submitted bids worth about GH¢2.94 billion for the 91-day instrument, of which the government accepted GH¢2.20 billion.

The 182-day bill attracted bids totalling approximately GH¢1.11 billion, with GH¢692.30 million accepted by the Treasury.

For the 364-day bill, bids amounted to about GH¢1.12 billion, while the government accepted GH¢587.61 million.

Meanwhile, interest rates on Treasury bills recorded mixed movements across the yield curve.

The yield on the 91-day bill rose by 2 basis points to 4.62%, while that of the 182-day bill increased to 6.31%, up from 6.27% the previous week.

In contrast, the yield on the 364-day bill declined by 4 basis points to 9.71%.

The auction results are summarised below:

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