For two consecutive months, the government has failed to meet its target for treasury bills due to tight liquidity in the money market.
Bank of Ghana auction results reveal that the government’s target fell short by GH¢991.61 million. The auction aimed for GH¢5.088 billion, but only GH¢4.094 billion was raised.
Some analysts suggest that the shortfall may be due to banks focusing on strengthening their capital reserves. All submitted bids for the short-term securities were accepted.
The 91-day bill saw a total uptake of GH¢2.532 billion, accounting for 61.84% of the bids. The 182-day bill received bids totaling GH¢1.357 billion, while the 364-day bill attracted GH¢205.23 million.
Interest rates have increased across the yield curve. The yield on the 91-day bill rose by 10 basis points to 24.88%.
The yield on the 182-day bill climbed to 26.78% from the previous week’s 26.68%. The yield on the 364-day bill reached 27.91%.
