Government missed its Treasury bills target for the fourth week running, as liquidity continued to tighten on the interbank market.
According to the auctioning results published by the Bank of Ghana, government mobilized GH¢573.22 million for both the 91-day and 182-day Treasury bills, as against target of GH¢673 million. This means government’s target fell by 14.8%.
It actually accepted all the bids from the investors, mostly banks.
Whilst, the interest cost of the 91-day T-Bills went up by 0.05% to 12.83% that of the 182-day bill fell by 0.05% to 13.52%.
Some may be attributing government’s inability to meet its T-bills target to the lower yield it’s offering on the market presently.
Joy Business understands the government is doing its possibly best to reduce the cost of servicing domestic debt.
The past few weeks have seen liquidity tightened on the market, a position that is depriving government’s ability to raise more cash on the domestic market.
The liquidity challenges on the market which has been predicated by the 2021 Budget of Fiscal Consolidation, as a result of introduction of some new taxes and levies, which implementation has begun.
|Securities||Bids Tendered (GH¢)||Bids Accepted (GH¢)||Interest rate|
|91 Day Bill||416.67 million||416.67 million||12.83%|
|182 Day Bill||156.55 million||156.55 million||13.52%|
|Total||573.22 million||57.22 million|
Source: Joy Business