Govt slightly misses T-Bill target despite investor rebound

The government narrowly missed its treasury bill (T-Bill) borrowing target in the latest auction. This occurred despite a modest recovery in investor participation.

According to the Bank of Ghana’s auction results, the government aimed to raise GH¢6.6 billion. However, it received total bids of GH¢6.4 billion, which is 97.5% of the target. Out of these bids, GH¢4.6 billion was accepted and GH¢1.8 billion was rejected. The accepted bids made up 70.08% of the government's initial target.

Recent market activity shows fluctuating investor confidence. Interest rates on short-term securities remain relatively stable. The 91-day bill held steady at 15.45%. The 182-day bill dipped slightly to 16.18%, down from 16.21% last week.

The 364-day bill also declined by 3 basis points to 18.62%. This gradual drop in treasury bill rates aligns with the government's goal of reducing domestic borrowing costs.