Treasury Bills undersubscribed in its latest auction

The government’s short-term debt auction saw a deepening undersubscription in the latest issuance falling GH¢2.29 billion short of its GH¢6.66 billion target.

A total of GH¢4.37 billion was raised at the close of the auction, reflecting weakened investor participation and marking a significant dip from last week’s GH¢353 million shortfall.

Investor interest remained firmly anchored on the 91-day bill, which continued to dominate demand.

The government accepted all bids tendered for the 91-day instrument raising GH¢2.65 billion.

Demand for the medium and long-dated tenors remained subdued.

A total of GH¢1.67 billion was accepted for the 182-day bill while the 364-day bill attracted only GH¢48 million both amounts fully allotted by the government.

Yields across the three instruments recorded modest declines, consistent with the Bank of Ghana’s disinflation-focused monetary policy stance.

The 91-day bill held steady at 14.79%, the 182-day bill dipped by 3 basis points to 15.45%, and the 364-day bill fell 12 basis points to 15.79%.

The marginal yield declines point to an improving inflation outlook and a possible easing of short-term funding pressures for the government.

Meanwhile, the upcoming auction under Tender 1958 is targeting GH¢7.58 billion an increase of GH¢919 million over the current week’s target as government ramps up its mobilisation efforts to meet looming maturities.

SP/VPO