Government has once again failed to meet its treasury bills auction target, marking the fourth consecutive week of underperformance. Data released by the Bank of Ghana indicates that the target was missed by approximately 24 percent.
According to the auction summary, the Treasury mobilised GH¢3.379 billion against a target of GH¢4.551 billion, ultimately accepting GH¢2.952 billion in bids.
Market observers suggest that investors are increasingly favouring Bank of Ghana (BoG) bills, which currently yield a rate of 27 percent significantly higher than the prevailing inflation rate of 18.4 percent.
The 91-day bill attracted the bulk of investor interest, accounting for 71.55 percent of total bids. Out of GH¢62.418 billion tendered, the government accepted GH¢2.191 billion. The 182-day bill saw a more modest participation, with investors submitting GH¢716.29 million in bids, of which GH¢603.74 million was accepted.
The 364-day bill garnered bids totalling just over GH¢236 million, and the Treasury accepted GH¢157.76 million of those.
In terms of interest rates, the market witnessed slight movements. The yield on the 91-day bill declined marginally by one basis point to 14.69 percent. The 182-day bill remained unchanged at 15.25 percent, while the 364-day bill eased to 15.69 percent from the previous week’s 15.74 percent.
