T-bills undersubscribed for 2nd consecutive time by GH¢1.5bn

The government’s Treasury bill (T-bill) auction has faced low demand again. It fell short of its target by GH¢1.5 billion for the second time.

In the latest auction, total bids reached GH¢4.1 billion. The target was set at GH¢5.6 billion.

This information was shared in a statement from the Bank of Ghana on March 28. The statement noted that investor participation was lower than expected. This reflects ongoing liquidity issues in the market.

The undersubscription trend raises concerns about the government's short-term financing needs. Analysts believe high inflation and market uncertainty are factors affecting demand.

Investor preference for alternative assets may also play a role in this situation. With continued shortfalls in T-bill subscriptions, the government might need new financing options.

It may also consider measures to boost investor confidence in future auctions. Financial experts are closely monitoring this issue due to its potential impact on fiscal policy and economic stability.