Gov’t Significantly Cuts T-Bill Auction Target as Undersubscription Enters Sixth Consecutive Week
The Government of Ghana has once again failed to meet its Treasury bill (T-bill) issuance target, extending its streak of undersubscriptions to a sixth consecutive week as liquidity in the money market continues to tighten and investors redirect funds toward more attractive short-term instruments issued by the Bank of Ghana (BoG).
Auction results published by the central bank show that the government raised GHS 4.83 billion against a target of GHS 6.41 billion, leaving a shortfall of roughly GHS 1.58 billion. The sustained underperformance, analysts say, reflects a significant realignment of investor behaviour driven by competitive yields in alternative markets.
Market watchers point to strong demand for the BoG’s 56-day bills, currently offering yields of around 21 percent, as the primary driver behind the weak performance of government securities. The superior returns, they argue, continue to divert liquidity away from Treasury instruments despite recent rate adjustments.
At the latest auction, yields on government short-term securities moved only marginally. The 91-day bill cleared at 11.13 percent (from 11.02%), the 182-day settled at 12.68 percent (from 12.66%), while the 364-day dipped slightly to 13.06 percent (from 13.08%). Analysts say such incremental changes are not sufficient to counter the pull of BoG’s higher-yield offerings, intensifying the government’s short-term funding challenge.
With persistent undersubscriptions, the government has lowered its target for the upcoming auction on Friday, November 28, 2025. The new target stands at GHS 2.86 billion across the 91-, 182- and 364-day tenors. Market participants will be watching closely to see whether investor appetite returns to T-bills or remains skewed toward BoG instruments heading into December – an outcome that could complicate cash flow management and fiscal operations.
Analysts warn that the recurring auction shortfalls signal growing pressures on the government’s debt management strategy, as rising funding costs and competition from central bank instruments reshape dynamics in the domestic fixed-income market.
