T-Bill Undersubscription Deepens as Government Falls GHS 2.29 Billion Short of Auction Target
The government’s short-term debt auction saw a deepening undersubscription in the latest issuance, falling GHS 2.29 billion short of its GHS 6.66 billion target.
A total of GHS 4.37 billion was raised at the close of the auction, reflecting weakened investor participation and marking a significant dip from last week’s GHS 353 million shortfall.
Investor interest remained firmly anchored in the 91-day bill, which continued to dominate demand. Government accepted all bids tendered for the 91-day instrument, raising GHS 2.65 billion.
Demand for the medium- and long-dated tenors remained subdued. A total of GHS 1.67 billion was accepted for the 182-day bill, while the 364-day bill attracted only GHS 48 million—both amounts fully allotted by the government.
Yields across the three instruments recorded modest declines, consistent with the Bank of Ghana’s disinflation-focused monetary policy stance. The 91-day bill held steady at 14.79%, the 182-day bill dipped by 3 basis points to 15.45%, and the 364-day bill fell 12 basis points to 15.79%.
The marginal yield declines point to an improving inflation outlook and a possible easing of short-term funding pressures for the government.
Meanwhile, the upcoming auction under Tender 1958 is targeting GHS 7.58 billion—an increase of GHS 919 million over the current week’s target—as government ramps up its mobilisation efforts to meet looming maturities.
