The Government experienced a setback on Friday, June 30, 2023, as it failed to meet its target of GH¢2,913 million ($264m) in the auction of its 91 and 182-day treasury bills.
The auction resulted in a total amount raised of GH¢2,392 million ($217m), falling short of the target by GH¢ 521 million ($47.3m). The Bank of Ghana (BoG) released a comprehensive auction results report, shedding light on the bids tendered and accepted for the treasury bills.
Primary dealers submitted bids amounting to GH¢1,906 million for the 91-day T-Bills, and the government accepted all the bids received. Similarly, bids for the 182-day T-Bills reached GH¢486 million, with the government once again accepting all the bids.
Notably, the auction target of GH¢2,913 million includes a Sell Buy-Back of GH¢1,014.91 million, which is set to mature and be rolled over on July 6, 2023.
Looking ahead to the next auction scheduled for July 7, 2023, the government aims to raise GH¢1,575 million through the issuance of the 91, 182, and 364-day T-Bills. This upcoming auction will be closely watched by market participants, as it represents an opportunity for the government to rebound from the shortfall experienced in the previous auction.
The shortfall in meeting the treasury bill auction target underscores the challenges faced by the government in fulfilling its financing requirements. It remains to be seen how the government will address this shortfall and adapt its strategies to ensure successful auctions in the future. Investor sentiment and market conditions will play a crucial role in determining the government’s ability to raise funds through these instruments.
As Ghana continues its efforts to manage its fiscal needs, market participants and investors will closely monitor future auctions to gauge the government’s progress in meeting its financing targets and to assess the overall attractiveness of Ghana’s treasury bill market.