For the fourth consecutive week, the government has missed its treasury bills target, falling short by GHS 559.19 million as liquidity remains tight on the money market.
The latest data from the Bank of Ghana shows that investors displayed reduced interest in T-bills during the recent money market auction, submitting bids totaling GHS 3.80 billion against a GHS 4.36 billion target.
A significant portion of the bids came from the 91-Day bill, with investors tendering approximately GHS 2.38 billion for the 3-month financial instrument, representing 62.7% of the total bids. The government accepted all these bids.
Additionally, the government received and accepted total bids worth GHS 1.17 billion from investors for the 182-day bill. For the 364-day bill, the government accepted all bids tendered, totaling GHS 243.04 million.
Overall, the auction experienced an under-subscription of about 12.82%, with interest rates remaining relatively stable on the money market, averaging between 24% and 27%.
Market analysts attribute this shortfall to the significantly high auction target. They also note that liquidity levels have been less robust following the recent Cash Reserve Ratio directive, and investors are seeking diversification options beyond T-bills.
