Government fell short of its Treasury bill target by approximately GH¢1.3 billion in its latest auction, reflecting tight liquidity conditions and cautious investor sentiment.

According to the auction results, total bids submitted amounted to GH¢3.73 billion against a target of GH¢5.01 billion. Out of this, GH¢3.27 billion was accepted.

Demand was relatively weak at the short end of the market. For the 91-day bill, only GH¢1.67 billion of the GH¢2.23 billion in bids was accepted, suggesting more selective investor participation and tighter pricing conditions.

In contrast, appetite for longer-dated instruments remained strong. All bids for the 182-day and 364-day bills—valued at GH¢667.12 million and GH¢831.41 million respectively—were fully accepted.

Interest rates also recorded a slight increase across all tenors, marking a pause in the recent downward trend. The 91-day bill rate rose to 4.78% from 4.71%, while the 182-day bill climbed to 6.36% from 6.28%. The 364-day bill similarly increased to 9.58%, up from 9.41%.

The marginal rise in yields points to cautious market sentiment and shifting liquidity conditions, even as government continues to depend on the domestic market to finance its short-term obligations.

Looking ahead, government is aiming to raise about GH¢4.93 billion in the next Treasury bill auction.