Treasury Increases Upcoming T-Bill Auction Target by 10.34% Amid Persistent, Rising Undersubscription
The Treasury has raised its target for the upcoming T-Bill auction to GHS 5.60 billion, a 10.34% increase from last week’s target, as it seeks to cover upcoming maturities valued at GHS 4.79 billion.
This move follows last week’s auction, where the Treasury’s target of GHS 5.08 billion was met with significant undersubscription amounting to GHS 993.61 million, a sharp rise from the previous week’s undersubscription of GHS 88.41 million.
Last week’s auction undersubscription would be the seventh consecutive week for which the Treasury has missed its auction targets.
Market demand for last week’s treasury bills totaled GHS 4.09 billion, with the Treasury accepting 100% of the bids tendered.
The 91-day bill led subscriptions, with accepted bids totaling GHS 2.53 billion, followed by the 182-day bill at GHS 1.35 billion and the 364-day bill at GHS 205 million.
Yields saw a modest increase of 10 basis points across all tenors, with the average rates for the 91-day, 182-day, and 364-day bills now standing at 24.89%, 26.79%, and 27.81%, respectively.
