The government has reverted to its undersubscription trend in the latest Treasury bills auction raising GH¢3.53 billion, falling short by some GH¢353 million short of its GH¢3.89 billion target.

The shortfall comes on the back of a temporary rebound in the previous week when the government recorded an oversubscription of GH¢431 million following three consecutive weeks of auction shortfalls.

According to the Bank of Ghana's auction results, the government aimed to raise GH¢3.89 billion but received total bids of GH¢3.53 billion.

Despite the shortfall, all bids across the tenors were fully accepted.

The government took up the entire GH¢2.69 billion tendered for the 91-day Treasury bill as well as GH¢554 million for the 182-day and GH¢286 million for the 364-day offers likely reflecting end-of-month liquidity needs.

Investor appetite for the 182-day and 364-day bills remained relatively weak.

A total of GH¢554 million and GH¢286 million were accepted for the 182-day and 364-day.

Yields on all three tenors declined marginally aligning with the Bank of Ghana’s current monetary policy posture aimed at fostering disinflation and reducing borrowing costs.

SP/MA

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