The government failed to meet its treasury bills target just a week after achieving an oversubscription, as demand moderated.
According to auction results by the Bank of Ghana, the short-term instruments were undersubscribed by about 20 percent.
The government received GH¢4.20 billion bids from the investors. This was against a target of GH¢5.27 billion. It, however, accepted all the bids tendered.
The 91-day bill was once again the most subscribed, as GH¢2.25 billion of the bids were tendered, representing 53.6 percent of the total bids.
The 182-day bill recorded bids worth GH¢802.87. For the 364-day bill, GH¢1.146 billion was tendered. Meanwhile, interest rates continue to rise on the yield curve.
The yield on the 91-day bill increased by 26.0 basis points to 5.30 percent. That of the 182-day bill also went up to 7.13 percent from 7.08 percent.
Similarly, the yield on the 364-day increased by 39.0 basis points to 11.36 percent.
Source: businesspotonline
