Last week’s primary auction once again highlighted a shortfall in demand as the Treasury faced an undersubscription, aiming for GHS 6.67 billion but securing only GHS 4.37 billion from a total offer of GHS 5.47 billion.
The Central Bank’s auction results revealed that bids totalling GHS 1.09 billion were rejected, leading to a 34.39% deficit against the government’s target.
Among the GHS 3.50 billion allocated for the 91-day bill, GHS 2.65 billion was successfully accepted. For the 182-day bill, GHS 1.67 billion was accepted out of an offer of GHS 1.81 billion, while the 364-day bill registered GHS 48 million in accepted bids from a total bid amount of GHS 157 million.
This selective acceptance strategy appears to have contributed to a gradual decline in interest rates, with yields currently averaging between 14% and 15%.
The yield for the 91-day bill remained steady at 14.79%, while the 182-day rate dipped by 3 basis points to 15.46%, and the 364-day bill fell by 11 basis points to 15.80%.
Looking forward, the government plans to target GHS 7.58 billion in the upcoming auction.
