Gov’t fails treasury bill target again as investors rush to BoG bills
The government has missed its treasury bill auction target for the fourth consecutive week, raising concerns about investor appetite for short-term government securities.
According to auction results published by the Bank of Ghana, the Treasury aimed to raise GHS4.551 billion but was only able to mobilize GHS3.379 billion.
Of this amount, it accepted GHS2.952 billion, falling short of the target by roughly 24 percent.
Market analysts say the underperformance stems from a shift in investor preference toward Bank of Ghana (BoG) bills, which currently offer more competitive yields. BoG bills reportedly provide returns around 27 percent, significantly higher than the current inflation rate of 18.4 percent, making them more attractive to institutional investors.
A breakdown of the auction results shows the 91-day bill attracted the most interest, with total bids amounting to GHS2.418 billion — accounting for 71.55 percent of the total bids. The government accepted GHS2.191 billion from this segment.
The 182-day bill recorded bids worth GHS716.29 million, with GHS603.74 million accepted. The 364-day bill attracted GHS236.4 million in bids, with GHS157.76 million accepted.
Despite missing auction targets, interest rates along the treasury bill yield curve continued to decline gradually.
The yield on the 91-day bill dropped by one basis point to 14.69 percent, while the 182-day bill held steady at 15.25 percent. The 364-day bill saw a slight decrease to 15.69 percent from 15.74 percent the previous week.
The ongoing under-subscription comes amid growing concerns over government liquidity and may affect short-term borrowing strategies as fiscal authorities work to manage domestic debt more effectively.
Analysts warn that unless treasury rates become more competitive or inflation declines further, investor preference may continue to favor higher-yielding central bank instruments.
