The government fell short of its treasury bill target last week, missing by GH¢2.03 billion as investor demand weakened. The Treasury accepted a total of GH¢6.24 billion in bids against a target of GH¢8.28 billion—representing an undersubscription of 24.6 percent.
This comes just a week after the market recorded its first oversubscription in months.
According to Bank of Ghana data, investors submitted GH¢6.50 billion across the 91-day, 182-day, and 364-day maturities, of which GH¢6.24 billion was accepted.
A breakdown shows the 91-day bill dominated the auction, with GH¢5.25 billion accepted from GH¢5.49 billion tendered. For the 182-day note, GH¢784 million was taken out of GH¢789 million submitted, while the 364-day bill saw GH¢209 million accepted from GH¢214 million tendered.
Analysts say subdued investor appetite, combined with the government’s high issuance target—driven largely by upcoming maturities—constrained the auction’s performance.
Meanwhile, yields edged slightly higher on the shorter tenors. The 91-day rose by 11 basis points to 10.53 percent, up from 10.42 percent previously. The 182-day inched up 3 basis points to 12.44 percent, while the 364-day yield slipped 2 basis points to 12.95 percent.
Market watchers note that the continued compression of the 364-day yield reflects the Treasury’s deliberate push to lower borrowing costs as part of its debt management strategy.
Looking ahead, the government is seeking GH¢3.01 billion in its next auction.
