BY Grace Zigah
The government’s treasury bills auction has recorded an undersubscription for the first time in about three weeks, despite a reduction in interest rates.
The Treasury received approximately GH¢6.8 billion, falling short of its target of GH¢8.58 billion.
Breakdown Of Bids
The 91-day bill attracted the majority of bids, with over GH¢5.02 billion tendered and GH¢4.99 billion accepted.
– The 182-day bill had GH¢1.372 billion in bids tendered, with GH¢1.237 billion accepted.
– The 364-day bill saw GH¢490.41 million in bids tendered, with GH¢452 million accepted.
Interest Rate Trends
The yields on the treasury bills have decreased, with:
– The 91-day bill yield dropping by 9.0 basis points to 10.20%.
– The 182-day bill yield falling to 11.54% from 12.35% the prior week.
– The 364-day bill yield decreasing by 14 basis points to 13.10%.
This development indicates a shift in investor sentiment, potentially influenced by the decrease in interest rates.
The government’s borrowing plans may need to be reassessed in light of this undersubscription.
