The government missed its treasury bills (T-bills) target for the third consecutive week as investors continued to favour high-yielding instruments, such as fixed deposits.
According to auction results from the Bank of Ghana, the T-bills were undersubscribed by nearly 10%. The Treasury received GH¢5.817 billion in bids but accepted GH¢5.754 billion.
The majority of bids were for the 91-day bill, with GH¢4.049 billion tendered, representing 69.61% of total bids. Of this, GH¢4.029 billion was accepted.
For the 182-day bill, GH¢1.337 billion was tendered, with GH¢1.327 billion accepted. Meanwhile, GH¢430.38 million was tendered for the 364-day bill, of which GH¢397.82 million was accepted.
Yields for the 91-day and 182-day bills increased, while that of the 364-day bill declined slightly. The yield on the 3-month bill rose by 28 basis points to 10.41%, and the 182-day bill yield increased to 12.38% from 12.23% the previous week. The 364-day bill yield, however, fell by 8 basis points to 13.00%.
Source: Joy Business
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