The Bank of Ghana’s Treasury bills auction, worth GH¢2,732.00 million, fell slightly short of expectations, being undersubscribed by 0.15%. Despite this, the auction concluded with the acceptance of T-bills totaling GH¢2,015.27 million for the 91-Day bills and GH¢712.75 million for the 182-Day bills.
Remarkably, the accepted bids equaled the tendered bids, resulting in a 100% acceptance rate. This outcome signals a balanced demand and supply scenario for the Treasury bills. Investors showed interest in both the 91-Day and 182-Day T-bills, which contributed to the overall acceptance of bids.
The 91-Day T-Bills exhibited a gain of 13 basis points (bps) in their yield, settling at 20.56%. This increase indicates a decrease in the effective interest rate for the instrument, which could be attributed to the relative attractiveness of the shorter-term maturity. Similarly, the 182-Day T-Bills experienced a significant gain of 40 bps in yield, settling at 23.36%.
Looking ahead, the Bank of Ghana has set a target of GH¢3,431.00 million for the upcoming auction, Tender #1852. This target encompasses the 91, 182, and 364-Day T-Bills. It will be interesting to observe market participants’ response to this increased offering and whether it will lead to a higher subscription rate compared to the previous auction.
The results of the Treasury bills auction reflect the prevailing market sentiment and the attractiveness of these short-term government securities. The gains in yields indicate that investors are demanding higher returns for their investments, potentially reflecting expectations of inflationary pressures or perceived risks in the market.