Treasury Auction Misses Target by GHS 1.90 Billion as Yields Ease
The Government’s latest Treasury auction undershot its target by GHS 1.90 billion, as the government raised GHS 6.68 billion against a target of GHS 8.58 billion, according to official results by the Bank of Ghana.
The mobilisation was slightly lower than the total bids tendered, which came in at GHS 6.88 billion, reflecting partial acceptance of investor offers.
Yields eased across all maturities, extending a recent trend of rate compression. The 91-day bill cleared at a weighted average of 10.20%, down from 10.29% in the previous week, while the 182-day and 364-day instruments settled at 12.25% and 13.10% respectively, compared with 12.36% and 13.25% a week earlier.
The range of accepted bids underscored continued appetite for government paper at lower yields, with the 91-day notes spanning 9.20% to 12.12%, the 182-day from 11.00% to 13.20%, and the 364-day from 11.50% to 13.78%.
Analysts say the government appears intent on capping borrowing costs as part of its broader macroeconomic adjustment strategy amid moderating inflation.
The shortfall comes after the August 1, auction, in which the state accepted GHS 5.48 billion of a GHS 6.79 billion tender.
The next sale, scheduled for August 15, targets GHS 4.24 billion, signalling a continued focus on short-term domestic debt issuance to meet upcoming maturities and manage liquidity.
Market participants will be watching whether the downward pressure on yields persists in the second half of the year, as fiscal authorities navigate the delicate balance between sustaining debt affordability and maintaining investor demand.
