The government missed GH₵755 million on money market T-bills, this week, indicating that the money market’s dwindling liquidity circumstances are still having an impact on the government’s auction target. The government secured GH₵4.89 billion of its short-term instruments versus a target of GH₵5.60 billion, according to the Central Bank’s most recent auction results. The deficit amounts to a about 13.47% undersubscription.
The entire GH₵3.9 billion tendered was accepted for the 91-day bills. Investors’ entire GH₵748 million for the 182-day bills was also approved. The government approved all GH₵197 million worth of bids for the 364-day bill. Treasury bill yields increased slightly, with interest rates averaging between 24 and 27 percent. The 182-day bill remained at 26.78%, while the 91-day note saw a 0.02% increase to 24.90%.
Moreover, the yield on the 364-day bill increased by 0.01% to 27.91%. The big auction target, according to market observers, is mostly to blame for this tendency. At the next T-bill auction, the Treasury plans to raise its borrowing goal to GH5.4 billion.
SOURCE: https://dew360.net
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