Government misses Treasury Bill Target for second consecutive week

For the second week in a row, the government has failed to meet its treasury bill target, underscoring ongoing challenges in investor demand and efforts to manage borrowing costs.

According to results published by the Bank of Ghana, the government received total bids amounting to GH¢5.471 billion in its latest treasury bill auction. Of this amount, GH¢1.095 billion in bids were rejected—part of a deliberate strategy to reduce the cost of debt servicing.

The auction fell short of the GH¢6.669 billion target, continuing a trend of undersubscription in recent weeks.

As in previous auctions, the 91-day bill attracted the bulk of investor interest, accounting for GH¢3.507 billion, or approximately 64.07% of total bids received. The government accepted GH¢2.653 billion from this category.

For the 182-day bill, investors submitted bids totaling GH¢1.806 billion, with GH¢1.674 billion accepted. The 364-day bill saw limited participation, with bids of GH¢157.18 million, of which only GH¢48.44 million were accepted.

Interest rates continued to decline across most tenors, reflecting the government’s ongoing efforts to bring down yields. The 91-day bill held steady at 14.79%, while the 182-day yield dipped by 3 basis points to 15.45%. The 364-day bill saw a more significant drop of 12 basis points, settling at 15.71%.

Market observers will be watching closely as the government targets GH¢7.58 billion in its next auction, amid efforts to balance investor appetite with fiscal prudence.