Investor demand for Treasury bills remained below the government’s financing target last week, with the latest auction recording a funding shortfall of GH¢1.03 billion.
According to results released by the Bank of Ghana, investors submitted a total of GH¢4.92 billion in bids across the 91-day, 182-day and 364-day Treasury bill tenors. The government accepted GH¢4.87 billion of the bids received, falling short of its target of GH¢5.89 billion.
Based on the amount accepted, the auction recorded a 0.16% shortfall relative to the government’s target.
The 91-day Treasury bill continued to attract the strongest investor interest, accounting for the bulk of bids received. Investors tendered GH¢3.37 billion for the short-term instrument, with the government accepting GH¢3.36 billion.
The 182-day bill attracted bids worth GH¢749.67 million, of which GH¢705.65 million was accepted. Meanwhile, investors submitted GH¢797.98 million in bids for the 364-day bill, all of which were accepted by the government.
Yields were mixed across the yield curve. The yield on the 91-day bill rose by 8 basis points to 4.99%, from 4.91% in the previous auction. The 182-day bill remained broadly unchanged at 7.04%, while the yield on the 364-day bill increased by 8 basis points to 10.45%, compared with 10.37% a week earlier.
The auction outcome indicates that although investor demand for government securities remained resilient, it was insufficient to fully meet the government’s short-term borrowing requirements.
Looking ahead, the government plans to raise GH¢5.44 billion through Tender 2010.
