Treasury Bill Auction Undersubscribed by GH¢1.05bn as Demand Weakens
Government’s short-term debt instruments are beginning to show signs of weakening investor demand, after the latest Treasury bill auction recorded an undersubscription of GH¢1.05 billion.
The auction results indicate that Government fell short of its GH¢4.67 billion target, receiving total bids of GH¢3.16 billion, out of which GH¢2.94 billion was accepted.
A breakdown of the issuance shows that the 91-day bill remained the most preferred instrument, attracting GH¢2.02 billion in bids, with GH¢1.99 billion accepted. The 182-day bill recorded GH¢498 million in bids, of which GH¢416 million was taken up, while the 364-day bill drew GH¢648 million, with GH¢533 million accepted.
Yields continued to trend upward across the curve, reflecting tightening pricing conditions and a potential shift in investor sentiment. The 91-day bill rate remained unchanged at 4.81%, while the 182-day yield rose to 6.71% from 6.62%. The 364-day bill also edged higher to 9.84%.
As a result, the average Treasury bill rate now stands at 7.12%.
The undersubscription marks a break from the recent trend of strong demand, where auctions were consistently oversubscribed, suggesting a possible recalibration in investor appetite amid evolving market conditions.
Government is, however, expected to return to the market on April 10, 2026, with a higher target of GH¢7.57 billion across the 91-day, 182-day and 364-day instruments, as it continues to meet its short-term financing requirements.
