The government has recorded a second consecutive shortfall in its treasury bills (T-bills) auction, as rising interest rates and shifting investor sentiment continue to weigh on demand.
Latest auction results from the Bank of Ghana show that the government missed its target of GH¢4.93 billion by about GH¢1.0 billion, attracting total bids of approximately GH¢3.93 billion—representing a 20.14% undersubscription. Of the bids received, GH¢3.23 billion was accepted.
Investor appetite remained strongest for the 91-day bill, which accounted for about 64.7% of total bids. A total of GH¢2.55 billion was tendered for the instrument, with GH¢2.21 billion accepted. The 182-day bill recorded GH¢762.97 million in bids, of which GH¢661 million was taken up. Meanwhile, the 364-day bill saw relatively weaker demand, with GH¢625.12 million tendered and only GH¢359.17 million accepted.
Despite the subdued demand, interest rates continued to rise across all tenors. The yield on the 91-day bill edged up by 3 basis points to 4.81%. The 182-day bill rose more sharply to 6.62% from 6.36%, while the 364-day bill increased by 19 basis points to 9.77%.
The upward movement in yields reflects a repricing of risk by investors, likely driven by inflation concerns and evolving market expectations. Analysts also point to cautious positioning ahead of anticipated bond issuances, which may be diverting interest away from short-term instruments.
The persistent undersubscription highlights tightening liquidity conditions and a more selective investor approach in the domestic debt market.
Looking ahead, the government aims to raise GH¢4.67 billion in the next auction to meet upcoming debt maturities and short-term financing needs.
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