Government Misses GHS4.49bn Treasury Bills Target as Investor Demand Softens

The Government of Ghana fell short of its treasury bills target in the latest auction, as investor demand for short-term securities continued to ease.

Results released by the Bank of Ghana showed that the government aimed to raise GHS4.49 billion but received total bids worth GHS4.22 billion, representing an undersubscription of about 6%. Out of the bids submitted, GHS3.93 billion was accepted.

The 91-day treasury bill remained the most attractive instrument to investors, accounting for the largest share of subscriptions. Investors submitted bids worth GHS3.36 billion for the short-term security, all of which were accepted.

Demand for the 182-day bill was relatively lower, with bids amounting to GHS749.67 million. The government accepted GHS705.65 million of the amount tendered.

Meanwhile, the 364-day bill attracted bids totaling GHS797.98 million, with the government accepting all bids received.

On the yield front, rates showed mixed performance. The yield on the 91-day bill declined by 8 basis points to 4.99%, suggesting lower returns for investors. The 182-day bill remained unchanged at 7.04%, while the yield on the 364-day bill increased by 8 basis points to 10.45%.

The latest auction results suggest that investor appetite for treasury bills may be moderating after several weeks of strong demand, although the 91-day bill continues to dominate interest among market participants.

Treasury Bills Auction Summary