Gov’t Misses T-Bill Auction Target for Seventh Consecutive Week
The Government of Ghana has once again fallen short of its Treasury Bill auction target, marking the seventh consecutive week of missed targets.
The latest auction raised GHS 4.09 billion, significantly below the GHS 5.08 billion target, with a shortfall of GHS 994 million, heightening concerns about the government’s ability to secure necessary funding through short-term debt securities.
Investor interest was concentrated in the 91-day Treasury Bill, which attracted GHS 2.53 billion in bids. The 182-day bill garnered GHS 1.35 billion, while the 364-day bill saw more tepid demand, with bids totaling GHS 205 million.
Despite the steady interest rates on T-Bills, the persistent undersubscription underscores the underlying challenges the government faces in meeting its funding needs.
Yields on T-Bills experienced marginal adjustments, with the 91-day bill ticking up by 0.1% to 24.88%, and the 182-day bill also rising by 0.1% to 26.78%.
The 364-day bill yield also inched up by 0.1% to 27.91%.
The subtle yield shifts reflect the government’s delicate balancing act between sustaining investor interest and managing its liquidity constraints.
Looking ahead, the government aims to raise GHS 5.6 billion in its upcoming Treasury Bill auction, focusing on the 91-day, 182-day, and 364-day maturities to align with investor demand.
However, the persistent liquidity challenges that have plagued recent auctions remain a significant concern.
