Government Rejects GHS 2.59 Billion in Treasury Bids Amid Third Consecutive Undersubscription
The government turned down more than GHS 2.59 billion in bids at its latest Treasury auction, despite falling short of its GHS 6.68 billion target, deepening concerns over waning investor appetite for domestic debt.
Total bids submitted for the short-term instruments amounted to GHS 5.35 billion, some GHS 1.33 billion below the auction target, marking the third straight week of undersubscription. Analysts say the persistent shortfalls suggest heightened investor caution, particularly amid declining yields.
The auction was heavily tilted towards the 91-day Treasury bill, which attracted GHS 4.36 billion in bids. However, only GHS 2.09 billion was accepted.
investor demand for the 182-day and 364-day tenors also remained subdued with the government accepting GHS 513 million and GHS 154 million out of the GHS 731 million and GHS 270 million bids tendered respectively for the maturities.
Yields on all three tenors eased modestly in line with recent monetary policy trends. The 91-day bill declined by six basis points to 15.10%, the 182-day slipped to 15.68%, and the 364-day bill fell to 16.78%. The softening yield curve reflects the Bank of Ghana’s continued efforts to stabilise inflation and support lower borrowing costs.
Looking ahead, the next auction under Tender 1956 seeks to raise GHS 5.54 billion, some GHS 1.14 billion less than the previous week’s target, suggesting a recalibration in issuance strategy in response to evolving market dynamics.
