For the first time this year, the government has struggled to meet its Treasury bill target, raising concerns about investor appetite for short-term debt securities. According to data from the Bank of Ghana (BoG), the government aimed to secure GH¢6.14 billion but managed to attract only GH¢3.32 billion in bids, leading to a significant 45% undersubscription.
Despite the shortfall, the government rejected GH¢1.67 billion worth of bids, signaling a preference for keeping borrowing costs in check rather than accepting higher-yield demands.
The breakdown of the auction results highlights investor hesitation. The 91-day Treasury bill, typically the most popular, saw GH¢3.6 billion in bids, but only GH¢2.33 billion was accepted. The 182-day bill attracted GH¢741 million, with GH¢574 million accepted. For the 364-day bill, GH¢406 million was accepted from the GH¢622 million tendered.
Interest rates on Treasury bills remained largely stable, with only slight fluctuations. The 91-day bill dipped to 15.73%, while the 182-day bill held steady at 16.93%. The most notable change was the 364-day bill, which saw an increase to 18.85% from 17.98%.
Market analysts suggest that the undersubscription reflects a maturing Treasury market, where demand and supply are reaching an equilibrium. The reduced investor participation over the past two weeks indicates a possible shift in strategy, as buyers assess whether current yields justify their risk.
With another auction on the horizon, the Treasury is now seeking GH¢5.64 billion, raising questions about whether the government will adjust its approach to attract more investors.
