The government recently held an auction for Treasury bills. Investors did not offer enough money to meet the government's borrowing target.
This resulted in a 16% undersubscription for the auction. This means the government received less money than it originally planned to borrow.
The 91-day Treasury bill was the most sought-after instrument. Investors submitted bids worth GH¢3.368 billion for it.
However, the government only accepted GH¢3.362 billion of these bids. This left a gap between the amount offered and the amount taken.
A government spokesperson stated that the undersubscription means interest rates on these bills will likely increase. This is to make them more attractive to investors in the future.
Higher interest rates on government bills can affect borrowing costs for businesses and individuals.