T-Bill auction falls short as investors favour short-term bets
By Praisebell Rosemond Larbi
The government slipped back into undersubscription territory at its latest Treasury bills auction, raising just over GHS6.50 billion against a target of GHS8.28 billion, according to Bank of Ghana (BoG) data released after the 13 September 2025 sale.
The shortfall comes barely a week after the market briefly returned to oversubscription, highlighting fluctuating investor appetite for short-term government securities.
Demand Concentrated in 91-Day Bill
As is often the case, the 91-day T-bill drew the bulk of investor interest. Bids totalled GHS5.49 billion, with the government accepting GHS5.25 billion.
The 182-day bill attracted bids of GHS789.20 million, nearly all of which about GHS784.20 million, were accepted.
For the 364-day instrument, investors tendered GHS214.99 million, with the government taking GHS209.54 million.
Market analysts noted that while subscription volumes remain significant, investors appear increasingly selective, favouring shorter tenors amid lingering uncertainties about interest rate direction and fiscal pressures.
Yields Reflect Tight Demand
The weaker demand pushed yields slightly higher on the shorter maturities: The 91-day yield climbed 11 basis points to 10.53 per cent, up from 10.42 per cent the previous week.
The 182-day yield inched up to 12.44 per cent, compared with 12.41 per cent earlier.
The 364-day yield bucked the trend, easing 2 basis points to 12.95 per cent, suggesting some stabilisation in longer-term expectations.
Dealers say the uptick in rates signals that the government had to offer marginally higher returns to attract buyers, a typical response when subscription levels soften.
Broader Market Context
The auction result underscores ongoing liquidity management challenges for the government as it balances domestic borrowing needs with investor risk appetite.
Traders point to factors such as: Seasonal liquidity demands from banks and corporates; Anticipation of policy rate moves by the BoG and Concerns over the cedi’s recent depreciation, which can influence demand for local-currency assets
