Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd
The Government of Ghana failed to meet its treasury bills target for the fifth week running.
According to the auction results by the Bank of Ghana, the government recorded 8.20% undersubscription of its auction target, but lower than the previous week.
Investors bought a little over GH¢4.48 billion of the short-term securities, as against a target of GH¢4.8 billion. It, however, accepted about GH¢4.0 billion of the bids.
The 91-day bill was once again the most subscribed bill as GH¢2.55 billion of the bids were tendered, representing 56.9% of the total bids. The uptake was, however, GH¢790 million.
The 364-day bill recorded bids of about GH¢1.1 billion. The uptake was GH¢162.59 million. For the 182-day bill, GH¢771.16 million of the bids were tendered.
About GH¢ 758 of the bids were accepted. Meanwhile, interest rates continued to rise on the yield curve. The yield on the 91-day bill increased by 3.0 basis points to 4.94%.
That of the 182-day bill also went up to 6.90% from the previous week’s 6.77%. Similarly, the yield on the 364-day bill inched up by 15 basis points to 10.12%.
Source: newsthemegh.com