BY Issah Olegor
The Government of Ghana has fallen short of its treasury bills target for the fifth straight week, signaling sustained pressure in the domestic debt market and waning investor confidence in short-term securities.
According to the latest auction results released by the Bank of Ghana, the government recorded an undersubscription of 8.20% against its target of GH¢4.8 billion. Investors submitted bids totaling approximately GH¢4.48 billion, out of which about GH¢4.0 billion was accepted.
The development reflects a continuing trend in recent weeks where government has struggled to meet its borrowing targets, despite ongoing efforts to stabilize the economy following debt restructuring and fiscal consolidation measures implemented in the aftermath of Ghana’s recent financial challenges.
A breakdown of the auction shows that the 91-day Treasury bill remained the most attractive to investors, attracting bids worth GH¢2.55 billion—representing 56.9% of total submissions.
However, only GH¢790 million of these bids were accepted, suggesting a cautious approach by government in managing borrowing costs.
The 182-day bill saw bids totaling GH¢771.16 million, with approximately GH¢758 million accepted, while the 364-day bill recorded GH¢1.1 billion in bids, of which only GH¢162.59 million was taken up.
Meanwhile, interest rates continue to trend upward across the yield curve, reflecting tightening liquidity conditions and investor demand for higher returns.
The yield on the 91-day bill rose slightly by 3 basis points to 4.94%, while the 182-day bill increased to 6.90% from 6.77% the previous week. The 364-day bill saw a sharper rise, climbing by 15 basis points to 10.12%.
