Gov’t Returns to Missing T-Bill Auction Targets; Hit by GHS 1.48 Billion T-Bill Undersubscription
Government has returned to missing auction targets set for its short-term debt instruments – 91, 182, and 364-day treasury bills.
The Treasury in the latest auction raised GHS 4.39 billion, falling short of the GHS 5.88 billion target by GHS 1.48 billion.
This is the first recorded undersubscription of the debt instruments following its oversubscription last week by some GHS 128 million. The Government successfully raised GHS 5.52 billion surpassing its GHS 5.4 billion target.
The oversubscription of the auctioned T-Bills followed eight consecutive weeks of undersubscription starting in July.
Undersubscription in the latest auction of the T-Bills was despite marginal upticks in the short-term debt instruments.
Investor interest was notably concentrated in the 91-day Treasury Bill, which attracted GHS 3.77 billion in bids.
The 182-day bill saw a more modest reception, garnering GHS 441 million, while the 364-day bill faced tepid demand with bids totaling just GHS 175 million.
Yields across the 91 and 182-day Treasury Bill tenors edged up, with the 91-day bill rising by 0.1% to 25.01% and the 182-day bill increasing by 0.01% to 26.81%.
Yield on the 364-day bill however remained steady ending the auction at 28.07%.
Looking forward, the government aims to raise GHS 7.43 billion in its next Treasury Bill issuance, again focusing on the 91-day, 182-day, and 364-day maturities.
