Investors have shifted their attention to the 182-day Treasury bills as well as medium term financial instruments, as the weekly Treasury bills sale fell short of target marginally once again.
This is because of an increase in the interest yield of these instruments.
With barely three months to end the year, government is doing everything possible to raise enough funds to finance the budget.
Due to this, it has no option than to increase the interest yield of the financial instruments to boost investor interest.
Both the interest rates of the 6-months bill and the 2-year Treasury Note went up, therefore attracting interest in the financial instruments. The yield of the182 day T-Bills was up by 400 basis points to 13.21%.
According to the figures of the Bank of Ghana, government mobilised 1.15 billion from the sale of the 91-day and 182-day T-Bills though the target was 1.23 billion.
The investors largely banks bought about ¢696.38 million of the 6-months bill, whilst they purchased ¢454.83 of 91-day T-Bills.
In recent times, liquidity has been tightening on the interbank market.
Some analysts had claimed that banks which are the biggest investors of Treasury bills had opted to liquidate some of their maturing bills in order to augment their cash balance as liquidity tightens.
Others also raised concerns that government’s surge in domestic borrowing could crowd out the private sector from accessing funds.
SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) | INTEREST RATE |
91-day | ¢454.83 million | ¢454.83 million | 12.49% |
182-day | ¢696.38 million | ¢696.38 million | 13.17% |
2-year Treasury Note | ¢926.78 million | ¢916.78 million | 17.50% |
TOTAL (91-day & 182-day) | ¢1.151 billion | ||
TARGET | ¢1.290 billion |
Latest Stories
-
IES calls for immediate removal of Matthew Opoku Prempeh over deteriorating energy crisis
6 mins -
GFA reschedule selected MD 28 fixtures to ensure maximum support for Dreams FC
8 mins -
A new financing model for SHS will leverage private sector to finance infrastructure – Bawumia to CHASS
11 mins -
Earth Day: CCCFS promotes adoption of ceramics to fight plastic pollution
35 mins -
Ten dead as navy helicopters collide mid-air in Malaysia
1 hour -
Kwadaso Onion Market: Traders relocated over security concerns
1 hour -
Organise your dumsor demo, we’ll choose who to partner for ours – Franklin Cudjoe tells Yvonne Nelson
1 hour -
Government to consolidate cash waterfall revenue collection accounts
2 hours -
‘Otumfuor is one of Kotoko’s biggest issues’ – Nana Agyemang
2 hours -
Bawumia travels to Italy and Vatican State
2 hours -
Bellingham wins Laureus Breakthrough award
2 hours -
2024 polls: Haruna Iddrisu predicts NDC victory in all 11 Upper West parliamentary seats
2 hours -
GPL: Berekum Chelsea beat Medeama to go fifth
2 hours -
Debt Restructuring: Government to reach agreement with IPPs in May
3 hours -
It’s time for Ghana to move from NPP and NDC – Abu Sakara insists
3 hours