T-bills auction: Government exceeds target by 30%, but demand to remain relatively soft at next auction

The government's treasury bills auction exceeded expectations by 30.52%, raising GH¢2.93 billion compared to a target of GH¢2.24 billion. This surplus resulted from demand softening in the previous auction. The Treasury accepted GH¢1.77 billion of the total bids, falling short of the target. The 91-day bill led the pack with GH¢2.2 billion in bids, accounting for 98% of the total.

It was followed by the 182-day bill with GH¢235.19 million bids, and the 364-day bill received GH¢474.85 million in bids. Interest rates on the yield curve continued to decrease, with the 91-day bill's yield dropping to 4.64%, the 182-day bill to 6.31%, and the 364-day bill to 9.80%. According to Databank Research, demand for treasury bills is expected to remain relatively soft at the next auction due to the Treasury's modest funding needs.