Government exceeds T-bills target by 30.5% as demand softens to GH¢2.93bn

The government surpassed its treasury bills target by a significant 30.52%, accumulating GH¢2.93 billion in bids. Despite a decline in demand last week, the Treasury managed to accept GH¢1.77 billion of the total investments, falling short of the GH¢2.24 billion target. The 91-day bill emerged as the most favored, garnering GH¢2.2 billion of the bids, which accounted for 98% of the overall bids.

The 182-day bill received bids worth about GH¢235.19 million, while the 364-day bill saw about GH¢474.85 million in bids. Across all bill types, the accepted amounts were GH¢1.394 billion, GH¢1.53 million, and GH¢224.35 million respectively. As a result, interest rates on the yield curve continued to decrease. The 91-day bill's yield dropped by 4.0 basis points to 4.64%, the 182-day bill's yield decreased to 6.31% from 6.67%, and the 364-day bill's yield went down by 3.0 basis points to 9.80%.

Experts anticipate that demand will remain subdued at the next auction, as the Treasury's funding needs are modest, leading to comfortably covered auctions with stable yields.