Government Misses T-Bill Target for Second Consecutive Week, Raises GHS 5.21bn Amid Yield Decline
The Government of Ghana raised GHS 5.21 billion in its latest Treasury Bill auction held on Friday, May 9, falling short of its GHS 5.38 billion target for the week, according to auction results published by the Bank of Ghana (BoG).
This marks the second consecutive undersubscription, following the previous week’s shortfall of GHS 1.59 billion, signaling growing investor caution in the face of declining interest rates.
Total bids submitted amounted to GHS 5.21 billion—equivalent to the amount accepted—leaving an undersubscription of approximately GHS 170 million.
Market activity was largely skewed toward short-dated instruments, with the 91-day bill attracting the highest investor interest. A total of GHS 3.85 billion was tendered and accepted under the 91-day instrument, representing 73.9% of total bids.
The 182-day and 364-day tenors raised GHS 747 million and GHS 611 million respectively, underscoring continued investor preference for liquidity and reduced duration risk.
Yields on all maturities eased further, reflecting the BoG’s monetary policy stance aimed at stabilizing inflation and moderating the cost of borrowing. The 91-day yield declined to 15.16% from 15.23%, the 182-day rate fell to 15.70% from 15.77%, while the 364-day bill dropped more sharply to 16.80% from 16.95%.
Looking ahead, the next auction under Tender 1955 is scheduled to raise GHS 6.68 billion, higher than the previous week’s target. However, analysts note that the government may continue to rely heavily on short-term debt instruments, as investor appetite for longer-term maturities remains tepid.
