For the fourth consecutive week, the government has fallen short of its treasury bills target, missing the mark 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 latest money market auction – submitting bids totalling GH¢3.80 billion against a GH¢4.36 billion target.
According to figures from the Bank of Ghana, a chunk of the bids came in from the 91-Day bill. Investors tendered approximately GHS 2.38 billion for the 3-month financial instrument, representing 62.7 % of the total bids with the government accepting all.
The government also 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 the bids tendered worth 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 point out that liquidity levels have been less robust following the recent Cash Reserve Ratio directive, and investors are seeking diversification options beyond T-bills.