GHS 6.49 Billion T-Bill Target Undersubscribed as Investor Appetite Continues to Wane
Government fell short of its Treasury Bill auction target on December 2, raising GHS 5.19 billion against a goal of GHS 6.49 billion.
The GHS 1.29 billion shortfall marks the fourth undersubscription in nine weeks, as waning investor appetite overshadowed a rise in yields across all maturities.
The auction saw strong interest in the 91-day bill, which attracted GHS 3 billion, while the 182-day and 364-day instruments garnered GHS 1.83 billion and GHS 359 million, respectively.
Yields climbed across the board, reflecting heightened fiscal risks:
- The 91-day bill yielded 27.60%, up 24 basis points from the previous auction.
- The 182-day bill yielded 28.31%, a 22 basis point increase.
- The 364-day bill rose marginally by 3 basis points to 29.90%.
The undersubscription underscores challenges in sustaining domestic borrowing plans.
The government has increasingly relied on Treasury bills to finance its fiscal deficit, but softening investor interest poses risks to its funding strategy.
