Government Reverts to Undersubscription Trend With GHS 353 Million Shortfall After Brief Oversubscription Rally
The government has reverted to its undersubscription trend in the latest Treasury bills auction, raising GHS 3.53 billion—some GHS 353 million short of its GHS 3.89 billion target.
The shortfall comes on the back of a temporary rebound in the previous week when the government recorded an oversubscription of GHS 431 million following three consecutive weeks of auction shortfalls.
Market interest in the short-term debt instruments remained skewed towards the 91-day bill, which accounted for the bulk of the bids. Government raised GHS 2.69 billion from the 91-day tenor, accepting all bids submitted.
Investor appetite for the 182-day and 364-day bills remained relatively weak. A total of GHS 554 million and GHS 286 million were accepted for the 182-day and 364-day papers, respectively—both also fully allotted.
Yields on all three tenors declined marginally, aligning with the Bank of Ghana’s current monetary policy posture aimed at fostering disinflation and reducing borrowing costs. The 91-day bill dropped by 13 basis points to 14.79%, the 182-day bill eased by 7 basis points to 15.48%, and the 364-day bill slipped 9 basis points to 15.91%.
The modest decline in yields signals improved investor confidence in the inflation outlook and suggests continued easing of short-term funding pressures.
Looking ahead, the next auction under Tender 1958 is targeting GHS 6.66 billion—some GHS 2.77 billion higher than the previous week’s target—setting the stage for a more aggressive mobilisation effort amid maturing obligations.
