Fixed Income Market: Gov’t falls short of auction target by GHS 455m
Government, fell short of achieving the set GHS 907m target in the issuance of the 91 and 182 days treasury bills on the fixed income market.
Government, in auctioning the short term debt instruments managed to secure only GHS 452m out of the targeted GHS 907m.
At the auction, offers tendered were below Government’s target and accepted bids were also below the tendered bids as GHS 342 million was raised in 91-Day Bills and GHS 110 million in the 182-Day Bills.
Government’s inability to achieve its set targets for T-Bills auction can be attributed to a number of a factors with the first being a tightening of liquidity on the interbank market and the second being the disinterest of investors in the short term instruments given the high rate of inflation which currently stands at 19.4%.
The situation can also be attributed to the recent policy tightening measures by the BoG.
Read: Ghana: Food, agric-related items imports reach $2bn
| BREAKDOWN OF TOTAL AMOUNT RAISED THIS WEEK | ||
| Treasuries | Bids Tendered (GH¢ MN) | Bids Accepted (GH¢ MN) |
| 91-Day T-Bill | 342.72 | 342.72 |
| 182-Day T-Bill | 110.64 | 110.64 |
| TOTAL | 453.36 | 453.36 |
| RESULTS OF LAST WEEK’S TREASURY BILL AUCTION | |||
| GOG Treasuries | Current | Previous | Change |
| 91-Day T-Bills | 17.41% | 16.78% | 0.629% |
| 182-Day T-Bills | 18.53% | 17.42% | 1.106% |
The target for the next auction (Tender #1797) is GHS 1,408.00 million in 91-day bills,182-day bills and 364-day bills.
Fixed Income Market Report_04.05.2022 by Fuaad Dodoo on Scribd
