Gov’t Raises GHS 2.7bn in Bills Auction, Missing GHS 4.24bn Target as Yields Soften
The government raised GHS 2.72bn in its latest Treasury bills auction, undershooting its GHS 4.24bn target by GHS 1.51bn, according to results published by the Bank of Ghana.
Total bids amounted to GHS 3.09bn, but the state accepted only part of the offers, reflecting efforts to manage borrowing costs.
Yields eased across all maturities, extending the recent trend of rate compression. The 91-day bill cleared at a weighted average of 10.13 per cent, compared with 10.20 per cent the previous week.
The 182-day and 364-day instruments settled at 12.23 per cent and 13.08 per cent respectively, both marginally down from a week earlier.
The range of accepted bids — 9.27 to 12.80 per cent for the 91-day note, 10.87 to 14.50 per cent for the 182-day, and 10.71 to 13.50 per cent for the 364-day — underscored investor appetite for government paper even at compressed yields.
Analysts said the government appeared intent on capping funding costs as part of its broader macroeconomic adjustment strategy amid moderating inflation.
The shortfall follows a stronger showing in the August 8 auction, when the state accepted GHS 6.68bn of a GHS 6.89bn tender.
The next sale, scheduled for August 22, aims to raise GHS 6.42bn, highlighting continued reliance on short-term domestic issuance to refinance maturing obligations and manage liquidity.
Market participants will be watching closely whether downward pressure on yields persists through the second half of the year, as fiscal authorities attempt to balance debt affordability with sustaining investor demand.
