Ghana’s latest Treasury bill auction fell short of the government’s target by GH¢1.07 billion (US$89 million) despite higher yields across all maturities, highlighting weak investor appetite for government securities.
Data released by the Bank of Ghana showed investors submitted bids totalling GH¢4.21 billion (US$351 million) for the 91-day, 182-day and 364-day Treasury bills. The government accepted all bids, raising the full amount tendered.
The result was below the government’s target of GH¢5.27 billion (US$440 million), representing a 20.2 percent under-subscription.
The 91-day Treasury bill attracted the highest demand, receiving bids worth GH¢2.26 billion (US$189 million), all of which were accepted. The 182-day bill received GH¢802.87 million (US$67 million) in bids, while the 364-day bill attracted GH¢1.15 billion (US$96 million).
Yields increased across the three instruments, with the 91-day bill rate rising by 26 basis points to 5.30 percent from 5.04 percent in the previous auction.
The yield on the 182-day bill climbed five basis points to 7.13 percent, while the 364-day bill recorded a sharper increase of 39 basis points to 11.36 percent from 10.97 percent.
The auction outcome suggests investor demand remains subdued despite the higher returns offered by government securities.
Treasury bills are a key source of short-term financing for Ghana’s government, but weaker demand could complicate efforts to meet borrowing targets and manage public financing needs.
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The government is expected to return to the market in its next auction with a target of GH¢4.60 billion (US$384 million).
