The government has missed its Treasury bill target for the first time in more than two months, after investors submitted fewer bids than the amount it sought to raise at the latest auction.

The government was targeting GH¢4.121 billion but received total bids of GH¢3.956 billion, leaving the auction short by about GH¢165 million.

Despite receiving nearly GH¢4 billion in bids, the government accepted only about GH¢2.21 billion, rejecting a large portion of the bids for the longer-term securities.

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The 91-day Treasury bill continued to attract the strongest investor interest.

Investors submitted GH¢2.28 billion in bids for the 91-day bill, representing about 57.8% of the total bids received.

The government accepted GH¢1.87 billion of those bids.

The 364-day bill also attracted significant interest, with investors submitting GH¢1.214 billion in bids. However, the government accepted only GH¢110.52 million, or less than 10% of the amount offered.

For the 182-day bill, investors submitted GH¢452.79 million in bids, while the government accepted GH¢224.96 million.

This means the government borrowed more through the shorter 91-day bill, despite investors offering more than GH¢1.6 billion for the 182-day and 364-day bills combined.

Meanwhile, interest rates on the longer-term Treasury bills also declined.

The yield on the 182-day bill fell by three basis points to 6.48%.

The rate on the 364-day bill also declined to 9.98%, from 10.10% at the previous auction.

Government raises GH¢7.21 billion from latest T-bills auction

The yield on the 91-day bill, however, remained unchanged at 4.69%.

In simple terms, the latest auction shows that investors were more willing to lend to the government for shorter periods, while the government accepted a smaller portion of the bids submitted for the longer-term bills.

DR/MA

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