Gov’t’s short term debt auction undersubscribed, misses GHS 4.9bn target
The Treasury fell short of its target to mobilize GHS 4.9bn on the domestic debt market via the issuance of the 91, 182, and 364-day Treasury bills, undersubscribed by GHS 67m.
The latest auction secured a total of GHS 4.83bn, with GHS 3.76bn accepted for the 91-day bills, GHS 924m for the 182-day bills, and GHS 142m for the 364-day bills.
The auction results revealed a slight decrease in yields across all three tenures.
The 91-day bills closed at 24.86%, the 182-day at 26.82%, and the 364-day at 27.81%.
These figures represent a marginal decline of 0.17%, 0.11%, and 0.11%, respectively, compared to the previous week’s yields of 25.03%, 26.93%, and 27.92%.
This underperformance highlights the challenges the government faces in securing sufficient funding amidst fluctuating investor confidence and market conditions.
The decrease in yields, albeit marginal, suggests a cautious yet positive investor outlook towards Ghana’s short-term debt instruments, reflecting moderate demand at slightly lower risk premiums.
Looking ahead, the government is set to return to the domestic debt market on Friday, June 21, 2024, with the ambition to raise GHS 3.55bn through the issuance of 91, 182, and 364-day Treasury bills.
The upcoming auction will be closely watched by investors and market analysts alike, as it will provide further insight into the demand dynamics for government securities and the broader economic sentiment.
The success of this issuance will be crucial for the government’s fiscal strategy and its ability to meet short-term financing needs.
