Government fell short of its Treasury bill target by about GH¢1.3 billion in its latest auction, amid tightening liquidity conditions and cautious investor participation.
Latest auction results show that out of a target of GH¢5.01 billion, total bids tendered reached GH¢3.73 billion, with GH¢3.27 billion accepted.
Demand was notably weaker at the short end of the yield curve, where only GH¢1.67 billion of the GH¢2.23 billion bids for the 91-day bill were accepted.
This indicates selective demand and tighter pricing conditions.
However, investor appetite remained strong for longer-dated instruments.
All bids submitted for the 182-day and 364-day bills amounting to GH¢667.12 million and GH¢831.41 million respectively were fully accepted.
On the interest rates front, yields edged up marginally across all tenors, which is a slight reversal in the recent downward trend in interest rates.
The 91-day bill rate rose to 4.78 percent from 4.71 percent, while the 182-day bill increased to 6.36 percent from 6.28 percent.
That of the 364-day bill also climbed to 9.58 percent, up from 9.41 percent.
The uptick in yields reflects cautious market sentiment and evolving liquidity dynamics, even as government continues to rely on the domestic market to meet its short-term financing needs.
In the next Treasury bill auction, government is targeting to raise approximately GH¢4.93 billion.
Source: businesspostonline
