Government Misses T-Bill Target, Raises GHS 5.75bn at Higher Yields
The Government of Ghana raised GHS 5.75 billion in its latest Treasury bills auction, undershooting its GHS 6.42 billion target by GHS 673 million, according to results released by the Bank of Ghana.
Total bids submitted amounted to GHS 5.81 billion, with accepted bids slightly lower, reflecting authorities’ attempt to contain borrowing costs amid investor demand for higher yields.
Yields firmed on the shorter tenors, ending the recent trend of compression. The 91-day bill cleared at a weighted average yield of 10.41%, compared with 10.13% the previous week, while the 182-day instrument rose 15 basis points to 12.38%. The 364-day bill, however, eased marginally by 8 basis points to 13%.
Accepted bid ranges underscored strong investor appetite for government paper, spanning 9.47% to 10.83% for the 91-day note, 11% to 12.21% for the 182-day, and 11.30% to 14% for the 364-day instrument.
The shortfall follows a similar undersubscription at the previous week’s auction, where the government accepted GHS 2.72 billion against a GHS 3 billion target.
The next issuance, scheduled for August 29, seeks to raise GHS 6.72 billion, highlighting the government’s continued reliance on short-term domestic borrowing to refinance maturing obligations and manage liquidity pressures.
