Government misses treasury bill target despite strong investor demand
The government failed to meet its Treasury bill fundraising target at Auction 2009, according to the latest auction results published by the Bank of Ghana.
Authorities aimed to raise GH¢5.892 billion through the sale of 91-day, 182-day, and 364-day Treasury bills. However, total accepted bids reached only GH¢4.866 billion, leaving a funding gap of approximately GH¢1.03 billion.
Data from the auction showed that the 91-day Treasury bill attracted the greatest investor interest. Out of GH¢3.368 billion in bids submitted, the government accepted GH¢3.363 billion.
The 182-day instrument also recorded significant participation, with investors tendering GH¢750 million. Of this amount, about GH¢706 million was accepted.
Meanwhile, the 364-day bill achieved a full uptake, with all GH¢798 million offered by investors accepted by the government.
Although demand for the securities remained healthy across all maturities, the total amount raised fell below the target set for the auction, indicating that government was unable to secure its intended level of short-term financing.
Yields on the instruments remained largely unchanged. The weighted-average interest rate for the 91-day bill stood at 4.99 percent, while the 182-day and 364-day bills recorded rates of 7.04 percent and 10.46 percent respectively.
The outcome suggests that investor appetite for government debt instruments remains strong, but the level of subscriptions was insufficient to enable the government to fully meet its borrowing objective for the auction period.
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