Treasury Auction Undersubscribed by GHS 395 Million Despite Recovery in Investor Interest
Government’s latest short-term debt auction ended in an undersubscription, raising GHS 7.19 billion against a target of GHS 7.58 billion—falling short by GHS 395 million.
The result, however, represents a notable recovery in investor sentiment compared to the previous auction, which recorded a GHS 2.29 billion shortfall.
Investor demand remained strongly skewed towards the 91-day Treasury bill, with the government accepting all bids for the instrument, raising GHS 6.02 billion.
The 182-day bill secured GHS 995 million, while the 364-day bill recorded the least interest, attracting GHS 173 million in accepted bids.
Yield movements across the spectrum of instruments reflected the Bank of Ghana’s disinflation-driven monetary policy posture.
The 91-day bill saw a marginal decline of 9 basis points to settle at 14.70%, the 182-day bill dipped by 20 basis points to 15.25%, and the 364-day bill edged down 5 basis points to 15.74%.
The moderation in yields signals improved inflation expectations and suggests reduced short-term borrowing pressures on the fiscal front.
Market analysts attribute the shift in auction performance to stabilising macroeconomic indicators, coupled with cautious optimism among investors as inflation continues to ease.
Meanwhile, the upcoming issuance under Tender 1960 is targeting GHS 4.55 billion – a GHS 3.30 billion decrease from the current auction target – indicating a recalibration of government’s near-term funding strategy.
