Yields
on
Treasury
bills
(T-bills)
witnessed
a
downward
trend
in
the
latest
auction,
as
the
government
fell
short
of
its
target
this
week
by
some
GHS232.7
million.
The
latest
data
from
the
Bank
of
Ghana
shows
that
investors
displayed
reduced
interest
in
T-bills
during
the
latest
money
market
auction
–
submitting
bids
totalling
GH¢4.48
billion
against
a
GH¢4.72
billion
target.
According
to
figures
from
the
Bank
of
Ghana,
a
chunk
of
the
bids
came
in
from
the
91-Day
bill.
Investors
tendered
GHS
3.54
billion
for
the
3-month
financial
instrument,
with
the
government
accepting
all.
The
government
also
received
and
accepted
total
bids
worth
GHS
782
million
from
investors
for
the
182–day
bill.
For
the
364-day
bill,
the
government
accepted
all
the
bids
tendered
worth
165.36
million.
In
all,
the
total
amount
sold
at
this
auction
saw
an
undersubscription
by
about
5%,
as
interest
rates
continued
to
tumble
on
the
money
market
averaging
between
24
and
27
percent.
For
some
market
analysts,
this
is
largely
due
to
the
significantly
large
auction
target
relative
to
last
week.
They
also
explain
that
liquidity
levels
have
not
been
as
strong
post
the
dynamic
Cash
Reserve
Ratio
directive
and
people
are
also
looking
for
ways
to
diversify
away
from
Tbills.
They
however
believe
that
the
weighted
average
rates
for
the
week
indicate
competitive
bidding
and
investor
confidence
in
government
securities.
Looking
ahead,
the
treasury
is
set
to
increase
its
borrowing
target
to
GHS
5.31
billion
in
the
next
T-bill
auction.