Waning demand for treasury bills continues to be evident, as the latest data from the Bank of Ghana reveals that the government has once again missed its target by a considerable GH¢2.31 billion.
In the most recent auction, the government accepted all bids totalling GH¢3.67 billion for its short-term instruments, falling short of a target set at GH¢5.98 billion.
Per the latest auction results, this resulted in an undersubscription of approximately 38.5% in the sale of these short-term instruments.
The uptakes for the 91, 182, and 364-day treasury bills were GH¢2,911.51 million, GH¢572 million, and GH¢189 million, respectively.
Following a series of previous increases, yields on these instruments experienced marginal declines of 18, 12, and 16 basis points, settling at 25.46%, 26.80%, and 28.52% week-on-week, respectively.
Market analysts attribute the reversal in T-bill yields towards a downward trend to a rational response by investors to the Bank of Ghana’s recent decision to lower the 56-day yield from 29% to 27%.
This adjustment aligns with the Monetary Policy Committee’s sharp reduction of the policy rate from 29% to 27%.
Looking ahead, the treasury has set its borrowing target atGH¢4.5 billion for the next T-bill auction.
This the market believes indicates that the government is actively seeking to stimulate interest and regain market confidence amid declining demand.
