Gov’t Misses T-Bills Target by GHS 3.38bn as Investor Appetite for Debt Shifts to BoG Securities
Government, in its latest Treasury bills auction raised GHS 3.33bn, falling short of its GHS 6.72bn target by some GHS 3.38bn amid waning investor appetite for short-term sovereign paper.
According to auction results released by the Bank of Ghana, bids totalled GHS 3.51bn, with the government accepting slightly less (GHS 3.33bn).
Analysts attribute the weak demand to a pivot by investors towards Bank of Ghana bills, which currently offer more attractive yields of about 24.8 per cent.
Per the auction results, the 91-day bill cleared at a weighted average yield of 10.32 per cent, down from 10.41 per cent the previous week. The 182-day and 364-day instruments also slipped marginally, settling at 12.37 per cent and 12.99 per cent respectively.
The shortfall marks a second consecutive undersubscription after last week’s auction, where the government raised GHS 5.75bn against a GHS 6.42bn target.
The next issuance, scheduled for September 5, seeks to raise GHS 3.78bn as the state leans on short-term borrowing to refinance maturing obligations and ease liquidity pressures.
