The government has fallen short of its treasury bill target by a significant GH¢2.262 billion, reflecting an undersubscription rate of 37.09%, as tight liquidity continues to characterize the money market in the lead-up to the December 7, 2024, general elections.
According to auction results released by the Bank of Ghana, the government raised GH¢3.83 billion from the sale of short-term instruments, well below its target of GH¢6.098 billion.
Despite the shortfall, all bids submitted for the treasury bills were accepted, with the 91-day bill accounting for the majority. Approximately GH¢2.9 billion, or 76.9% of the total bids, came from the 91-day instrument.
Additionally, bids worth GH¢669.37 million were recorded for the 182-day bill, while GH¢216.58 million was raised from the 364-day bill.
The auction also saw interest rates climbing on the yield curve. The yield on the 91-day bill rose by 0.40%, reaching 27.36%. Similarly, the yield for the 182-day bill increased to 28.09%, up from 27.78% the previous week.
The results highlight ongoing challenges in meeting funding targets amid constrained liquidity and rising borrowing costs.
For the 364-day bill, the interest rate also went up to 29.87% from 29.21% the earlier week.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 2.949bn | 2.949bn |
| 182 Day Bill | 669.37m | 669.37m |
| 364 Day Bill | 216.58m | 216.58m |
| Total | 3835.93bn | |
| Target | 6.098bn | |
SOURCE: Joy Business
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