For the second consecutive week, the government has failed to meet its Treasury bills (T-bills) target, despite the Ghana cedi’s remarkable performance as the world’s best-performing currency.
According to auction results released by the Bank of Ghana, the T-bills auction saw a marginal undersubscription. The government received GH¢5.216 billion in bids, which fell short of its targeted GH¢5.386 billion. However, all the bids tendered were accepted.
The majority of the bids, about GH¢3.858 billion, came from the 91-day bill, accounting for 73.96% of the total. For the 182-day bill, GH¢747.06 million was tendered, while just over GH¢611 million was submitted for the 364-day bill.
On the interest rate front, yields on the bills continued to decline. The yield on the 91-day bill fell slightly by 9 basis points to 15.16%. Similarly, the 182-day bill yield eased from 16.03% to 15.70%, while the 364-day bill saw a decrease of 15 basis points, bringing the yield down to 16.80%.
While the cedi’s strong performance has been widely lauded, the government continues to face challenges in meeting its T-bills auction targets, reflecting broader trends in the economy. The continued drop in yields suggests shifting investor sentiment and evolving market conditions, with many watching closely to see how these developments will affect the government’s fiscal strategy moving forward.
