Investor interest in short-term government instruments dipped for the first time in several months with the Bank of Ghana recording a 25.4% undersubscribed treasury bills sale.
According to auction results by the BoG the government’s target for the auction was GH¢5.0 billion, but the bids tendered were GH¢3.7 billion.
The government, however, accepted GH¢3.26 billion of the bids.
The 91-day bill was the most subscribed as GH¢2.23 billion of the bids were tendered, representing 59.8% of the total bids. However, the uptake was GH¢1.76 billion.
For the 182-day bill, GH¢667.12 million of the bids were tendered. All the bids were accepted.
The 364-day bill recorded bids of about GH¢831.41 million. All the bids were also accepted.
Meanwhile, interest rates rose on the yield curve.
The yield on the 91-day bill increased by 7.0 basis points to 4.78%.
That of the 182-day bill also went up to 6.36% from 6.28% the previous week.
Similarly, the yield on the 364-day bill inched up by 18 basis points to 9.58%.
A Business Desk Rport