T-Bill Auction Misses Target as Demand Softens

Government fell short of its treasury bills fundraising target in the latest auction despite continued investor participation, as interest rates across the short-term debt market recorded marginal declines.

Results released by the Bank of Ghana showed that the auction was undersubscribed by 5.9 percent, reflecting relatively moderate investor demand for short-term government securities.

Government had targeted to raise GH¢4.48 billion through the issuance of treasury bills but received total bids worth slightly above GH¢4.21 billion. Out of the amount tendered, approximately GH¢3.9 billion was accepted.

The 91-day treasury bill remained the preferred investment instrument among market participants, continuing a recent trend of stronger appetite for shorter-tenor government securities.

Total bids submitted for the 91-day instrument reached GH¢2.52 billion, accounting for nearly 60 percent of all bids received during the auction. Government accepted almost the entire amount tendered under the instrument, with uptake reaching GH¢2.51 billion.

The 182-day bill attracted bids valued at GH¢877.72 million, out of which a little over GH¢723 million was accepted.

Meanwhile, the 364-day bill recorded total bids of GH¢817.12 million, with government accepting approximately GH¢699 million.

Despite the lower subscription level, yields continued their gradual downward trend, suggesting easing pressure on government borrowing costs.

The interest rate on the benchmark 91-day bill declined marginally by 1 basis point to 4.91 percent.

The 182-day bill maintained its previous rate at 7.04 percent, showing no change from the prior auction.

The 364-day bill also recorded a slight decline, with yields easing by 2 basis points to close at 10.37 percent.

The latest auction outcome comes amid evolving domestic liquidity conditions and growing market attention on monetary policy signals and government borrowing strategy.

Analysts say continued moderation in treasury yields could support broader financing conditions if sustained, although investor demand may remain selective as market participants assess inflation trends and future interest rate expectations.