Latest data from the Bank of Ghana indicates that government missed its Treasury bill target for the third consecutive time falling short by GHS 3.92 billion.
The auction recorded an undersubscription rate of 58.67%, a stark contrast to the previous week’s full acceptance.
The government sought to raise GHS 6.68 billion but received total bids of GHS 2.76 billion.
The 91-day bill received GHS 4.36 billion in bids, with GHS 2.09 billion accepted. For the 182-day bill, the government accepted GHS 513 million out of GHS 731 million tendered, while the 364-day bill attracted GHS 260 million in bids, of which GHS 154 million was accepted.
The weak uptake caused yields to decline further. The 91-day rate fell by 5 basis points to 15.11%, from 15.16% the previous week. The 182-day yield edged down 2 basis points to 15.68%, while the 364-day rate dropped 1 basis point to 16.79%.
For market analysts, the weaker investor appetite signals investors may be growing cautious about short-term government securities. This could be due to concerns about fiscal risks, liquidity constraints, or more attractive alternative investments.
Also, falling yields reduce investor returns, as lower yields make T-bills slightly less attractive—especially for investors seeking higher returns to offset inflation or currency risks.
Looking ahead, the government is targeting GHS 5.54 billion in the upcoming auction.