Treasury Misses T-Bill Auction Target by GHS 756 Million for Eighth Consecutive Week
The Government of Ghana has once again missed its Treasury Bill auction target, marking the eighth consecutive week of undersubscription.
The latest auction raised GHS 4.84 billion, falling short of the GHS 5.60 billion target by GHS 756 million. This persistent shortfall raises significant concerns about the government’s ability to secure necessary funding through short-term debt instruments.
Investor interest was notably concentrated in the 91-day Treasury Bill, which attracted GHS 3.90 billion in bids.
The 182-day bill saw a more modest reception, garnering GHS 748 million, while the 364-day bill faced tepid demand with bids totaling just GHS 197 million.
Despite interest rates on Treasury Bills remaining relatively steady, the ongoing undersubscription underscores the challenges the government faces in meeting its financing needs.
Yields on T-Bills experienced minor adjustments, with the 91-day bill ticking up by 0.02% to 24.90%, while the 182-day bill held firm at 26.78%. The 364-day bill yield also inched up by 0.01% to 27.91%.
These subtle shifts in yields reflect the delicate balancing act the government must perform between sustaining investor interest and managing liquidity constraints.
Looking ahead, the government aims to raise GHS 5.4 billion in its upcoming Treasury Bill auction, focusing on the 91-day, 182-day, and 364-day maturities to align with investor demand.
However, the persistent liquidity challenges that have plagued recent auctions continue to loom large over the government’s financing strategy.
