Treasury Auction Undersubscribed by GHS 1.59Bn as Government Raises GHS 4.72Bn
The Government in its latest Treasury Bill auction raised GHS 4.72 billion on Friday, May 2, falling short of the government’s GHS 6.32 billion target and marking a sharp reversal from the previous week’s oversubscription of GHS 548 million.
Investor demand totaled GHS 5.29 billion, of which GHS 4.72 billion was accepted. The auction recorded an undersubscription of GHS 1.59 billion, underscoring growing investor caution amid declining yields and persistent macroeconomic uncertainties.
The auction results, published by the Bank of Ghana, showed a strong appetite for shorter-term instruments, with the 91-day bill accounting for 63.1% of the total amount accepted. All GHS 2.98 billion tendered for the 91-day paper was accepted, suggesting investors continue to prefer liquidity and lower duration risk.
Meanwhile, GHS 668 million was accepted for the 182-day tenor out of GHS 869 million tendered, while GHS 1.07 billion was secured for the 364-day bill from bids totaling GHS 1.43 billion.
Yields across all maturities declined modestly, reflecting the central bank’s ongoing monetary stabilization efforts. The 91-day yield fell to 15.23% from 15.32%, the 182-day bill eased to 15.77% from 16.03%, and the 364-day instrument declined to 16.95%, down sharply from 18.37% a week earlier.
The next auction, scheduled under Tender 1954, aims to raise GHS 5.38 billion—lower than last week’s target of GHS 6.23 billion. Analysts suggest the government is likely to maintain its reliance on short-term borrowing to manage domestic liquidity needs, as investor appetite for longer-dated maturities remains subdued.
