Treasury slashes upcoming T-Bill auction target by 33.8% as Gov’t looks to settle GHS 2.1bn in maturities

The 91-day bill attracted the highest subscriptions, securing GH¢2,761.36 million. The 182-day bill followed with GH¢660.62 million, while the 364-day bill garnered GH¢182.42 million.

The Government of Ghana is set to auction GH¢2.65 billion in treasury bills this Friday, June 28, 2024, a 33.85% reduction from the previous week’s target of GH¢3.55 billion.

This issuance will include the 91-day, 182-day, and 364-day bills, partially aimed at covering upcoming maturities amounting to GH¢2.12 billion.

Strong Demand in Previous Auction

Last week’s T-Bill auction saw robust market demand, with bids totaling GH¢3.60 billion, exceeding the target by GH¢49.40 million.

The government accepted all bids tendered, reflecting a 100% acceptance rate.

The 91-day bill attracted the highest subscriptions, securing GH¢2,761.36 million. The 182-day bill followed with GH¢660.62 million, while the 364-day bill garnered GH¢182.42 million.

Yield Adjustments

Yields experienced a downward adjustment across the board, except for the 91-day bill which remained steady at an average rate of 24.87%.

The 182-day and 364-day bills each saw a decline of 3 basis points, settling at 26.80% and 27.79%, respectively.

The upcoming auction, with its reduced target, will be closely watched by market participants, providing insights into the government’s funding strategies and market appetite for short-term debt instruments.

Source: Norvanreports

 

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