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The government’s short-term borrowing strategy came under renewed strain last week after missing its Treasury bill target by 30 percent, securing GH¢4.76 billion against a planned GH¢6.82 billion, according to data released by the Bank of Ghana.
Despite the shortfall, all bids submitted were accepted, signalling the Treasury’s increasing urgency to shore up liquidity and meet near-term financing obligations. The shortfall translates to a GH¢2.06 billion gap between planned and actual issuance.
A breakdown of the auction results shows that the 91-day bill attracted the most investor interest, with bids amounting to GH¢4.87 billion, all of which were accepted. The 182-day bill followed with GH¢785 million, while the 364-day bill recorded GH¢487 million in tenders—both fully taken up.
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Market analysts say the consistent underperformance of recent auctions points to growing strain on the government’s domestic financing strategy, as short-term borrowing becomes increasingly difficult amid cautious investor sentiment.
“This may explain the Treasury’s decision to ramp up its acceptance of bids in an effort to bridge the funding gap ahead of the November budget presentation,” Databank Research observed in its market commentary.
Yields showed mixed trends across the short-term curve. The 91-day bill eased slightly by two basis points to 10.67%, while the 182-day bill rose marginally to 12.46%. The 364-day bill fell by five basis points to 12.87%, reflecting a cautious but selective investor approach.
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