Ghana’s Treasury auction last week missed its target by GHS 1.59 billion, with total bids submitted amounting to GHS 4.73 billion against a target of GHS 6.43 billion, according to Bank of Ghana data.
Despite the shortfall, the auction saw all bids for the 91-day treasury bill fully accepted, totaling GHS 2.98 billion. Meanwhile, the 182-day and 364-day bills received lower-than-expected bids, resulting in a selective acceptance strategy from the Treasury. This approach contributed to significant yield reductions, especially on longer-dated securities.
Yields for all tenors dropped notably: the 91-day bill saw a small decrease of 9 basis points to 15.23%, the 182-day bill fell by 25 basis points to 15.77%, and the 364-day bill experienced a sharp decline of 142 basis points to 16.95%. Analysts attribute this yield compression to the government’s strategic efforts to manage borrowing costs amid weaker investor demand.
Looking ahead, the government plans to target GHS 6.69 billion in the upcoming auction, signaling continued efforts to balance fiscal needs with investor appetite.
