Liquidity in Ghana’s money market remains constrained as the government fell short of its treasury bill target by GH?2.6 billion in the latest auction.

According to auction results from the Bank of Ghana, the government managed to raise GH?4.7 billion through short-term instruments, against a target of GH?7.4 billion, marking an undersubscription of approximately 35.9%.

The 91-day treasury bill garnered the highest level of interest, with all GH?2.59 billion tendered being accepted. The 182-day bill attracted about GH?830 million in bids, while the 364-day bill accounted for GH?1.3 billion of the total.

Yields on treasury bills saw a slight uptick, with interest rates ranging between 25% and 28%.

Market analysts attribute this trend to the high auction target, combined with ongoing liquidity challenges in the market.

The Treasury is expected to raise its borrowing target to GH?5.98 billion in the upcoming T-bill auction.