Dampening liquidity conditions on the money market continue to weigh on the government’s auction target as the government missed GH₵755 million on the money market this week.
Per the latest auction results from the Central Bank, the government secured GH₵4.89 billion of its short-term instruments against a target of GH₵5.60 billion.
The shortfall represents an undersubscription of about 13.47%.
For the 91-day bills, all GH₵3.9 billion tendered was accepted. All GH₵748 million from investors for the 182–day bills was also accepted.
For the 364-day bill, the government accepted all the bids tendered worth GH₵197 million.
Yields on the treasury bills went up marginally with interest rates averaging between 24 and 27 percent, with the 91-day bill ticking up by 0.02% to 24.90%, while the 182-day bill was held at 26.78%.
The 364-day bill yield also inched up by 0.01% to 27.91%.
For market analysts, this trend is largely due to the large auction target.
The Treasury is set to increase its borrowing target to GH₵5.4 billion in the next T-bill auction.
