The government failed to meet its treasury bills target yet again, with investors still preferring other financial instruments that give higher returns.
According to trading results by the Bank of Ghana, the government target was undersubscribed by 13%.
Indeed, investor sentiments on the treasury market continue to soften amid low yields.
According to the trading results, the government got GH¢4.619 billion from a target of GH¢5.329 billion. It accepted all the total bids.
A little over 81% of the bids came from the 91-day bill. About GH¢3.74billion of the bids were tendered.
For the 182-day bill, about GH¢567 million of the bids were tendered.
Also, GH¢309.3 million of the bids were tendered for the 364-day bill.
Meanwhile, interest rates continue to rise along the yield curve.
The yield on the 91-day bill increased by 14 basis points to 10.81%.
That of the 182-day bill also went up to 12.49% from the previous week’s 12.30%. The yield on the 364-day bill increased by 8.0 basis points to 12.95%.
Source: Joy Business
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