T-Bill Auction Sees 45.9% Undersubscription for First Time in Months

For the first time in several weeks, Ghana’s short-term debt auction has recorded an undersubscription, with bids falling short by 45.9%—equivalent to GHS 2.82 billion.

At last Friday’s auction, the government received total bids worth GHS 4.99 billion against a target of GHS 6.14 billion. Of this, GHS 3.31 billion was accepted, reflecting a measured approach to debt issuance amid changing market dynamics.

The 91-day bill saw the highest demand, attracting GHS 3.63 billion in bids, of which GHS 2.33 billion was accepted. The 182-day and 364-day bills recorded bids of GHS 741 million and GHS 622 million, with the government accepting GHS 574 million and GHS 406 million, respectively.

Yields on the 91-day bill declined by 13 basis points to 15.73%, while the 364-day instrument fell by 12 basis points to 18.84%. The yield on the 182-day bill remained unchanged from the previous auction.

The auction results come as the government prepares to raise an additional GHS 5.64 billion at its next short-term debt sale scheduled for March 28.

The decline in yields suggests improving investor confidence in Ghana’s macroeconomic outlook, though the undersubscription signals cautious sentiment in the fixed-income market.