The government’s auction of treasury bills recorded an undersubscription for the seventh consecutive week, narrowly missing its target for Tender 1917 by just 1.66%.

Last Friday, the government aimed to raise GH¢ 5.319 billion from the treasury market but only managed to secure GH¢ 5.230 billion, which is 98.33% of the target.

Despite this continued undersubscription, the latest auction results provide a glimmer of hope. The 98% subscription rate represents a notable improvement and the best result in nearly two months.

Additionally, last Friday’s auction came at a marginally lower cost to the government. Interest rates for the 91-day, 182-day, and 364-day bills dropped to 24.79%, 26.69%, and 27.81%, respectively, compared to the previous week’s rates of 24.84%, 26.75%, and 27.85%.

Looking ahead, the government has lowered its target for the upcoming week. For Tender 1918 this Friday, the goal is to raise GH¢ 5.088 billion, with the hope that the treasury market will experience an oversubscription for the first time in eight weeks.