Treasury Bill Auction Undersubscribed for Second Week as Investor Demand Softens
The Government of Ghana raised GHS 2.57 billion in its latest Treasury bill auction, falling short of its GHS 3.71 billion target by GHS 1.13 billion, marking the second straight undersubscription as investor demand for short-term government paper moderates.
Data from the Bank of Ghana showed total bids of GHS 2.59 billion, of which nearly all were accepted, underscoring a cautious stance among investors.
Yields edged lower across the curve, with the 91-day bill clearing at 10.47%, down from 10.50% in the previous auction. The 182-day and 364-day tenors also eased slightly to 12.35% and 12.87%, respectively.
The modest decline in rates reflects improved liquidity conditions in the money market but also signals waning investor appetite amid competing investment alternatives and tighter cash positions among institutional buyers.
The government is expected to return to the market on October 10, seeking to raise GHS 5.26 billion to refinance maturing obligations and manage near-term funding pressures.
