Last week, the government fell short of its treasury auction goal by GHS 1.59 billion, as reported by the Bank of Ghana.
The total bids received were GHS 4.73 billion, which did not meet the GHS 6.43 billion target. All bids for the 91-day treasury bill were fully accepted, amounting to GHS 2.98 billion.
For the 182-day bill, investors submitted bids totaling GHS 869 million, with GHS 668 million accepted.
The 364-day instrument saw bids of GHS 1.43 billion, but only GHS 1.07 billion was accepted, primarily through non-competitive bids.
The Treasury’s selective acceptance approach led to a significant decrease in yields, especially on the longer end of the curve.
Yields decreased across all tenors:
- The 91-day bill fell by 9 basis points to 15.23% (down from 15.32% the previous week),
- The 182-day bill decreased by 25 basis points to 15.77%, and
- The 364-day bill experienced the largest drop, falling 142 basis points to 16.95%, mainly due to a lack of competitive pricing.
Analysts suggest that the reduction in yields indicates a strategic change by the Treasury towards more cost-effective borrowing amid weak demand. In the next auction, the government aims to raise GHS 6.69 billion.
