Ghana’s short-term debt market saw its momentum stall last week as the Treasury bill auction ended in undersubscription, snapping a three-week streak of oversubscriptions.
Data from the Bank of Ghana (BoG) shows the government fell short of its GHS 8.58 billion target, raising only GHS 6.69 billion — a shortfall of 22.12%. Market watchers point to sharply reduced yields, particularly on the 56-day BoG bill, as a key factor dampening investor demand.
The 91-day bill attracted GHS 5.02 billion in bids, with almost all — GHS 4.99 billion — accepted. For the 182-day bill, GHS 1.23 billion was taken from GHS 1.37 billion offered, while the 364-day bill saw GHS 452 million accepted out of GHS 490 million tendered.
Analysts say investors have become less inclined to lock funds into T-bills as returns shrink. Yields on short-term instruments slipped further, with the 91-day rate down 9 basis points to 10.20%, the 182-day rate dropping 10 basis points to 12.25%, and the 364-day rate falling 14 basis points to 13.10%.
Liquidity has also been drawn into alternative short-term placements. The BoG’s Monday and Wednesday auctions alone mobilised about GHS 6.2 billion before Friday’s T-bill sale, diverting a chunk of market funds.
The government will return to the market this week, targeting GHS 4.24 billion in its next auction, with attention now on whether easing yields will continue to weigh on investor participation.
