The Ghanaian government continued its conservative borrowing approach in the latest Treasury bill auction, accepting only GHS 4.37 billion out of a GHS 5.47 billion offer, despite falling well short of its GHS 6.67 billion target. This marked another week of undersubscription, as investor demand continues to soften.
Data released by the Bank of Ghana shows that although the government faced a 34% shortfall from its target, it rejected GHS 1.09 billion worth of bids—indicating a commitment to price discipline and yield management, rather than borrowing at elevated rates.
The cautious acceptance strategy contributed to a continued decline in interest rates across all tenors. The benchmark 91-day Treasury bill maintained a yield of 14.79%, while the 182-day bill saw a marginal drop of 3 basis points to 15.46%. The 364-day bill recorded the sharpest decline, shedding 11 basis points to close at 15.80%.
By maturity segment, the government accepted GHS 2.65 billion of the GHS 3.50 billion offered for the 91-day bill, GHS 1.67 billion of GHS 1.81 billion for the 182-day bill, and GHS 48 million of GHS 157 million for the 364-day note.
Analysts say the trend reflects ongoing market caution, with investors seeking clarity on the government’s debt strategy and inflation outlook. Despite the subdued interest, the Treasury is eyeing a higher target of GHS 7.58 billion in the next auction—signaling that the state’s short-term financing needs remain substantial.
Market watchers will be closely monitoring the next issuance for signs of improved participation or further rate suppression, amid tightening liquidity and uncertainty around fiscal consolidation efforts.
