Government misses treasury bills target as investor demand softens

The government fell short of its treasury bills target in the latest auction after investor demand weakened, reversing the oversubscription recorded in the previous week.

Results released by the Bank of Ghana showed that the government received total bids of GH¢4.20 billion against a target of GH¢5.27 billion, representing an undersubscription of approximately 20 percent.

Despite the shortfall, the government accepted all bids submitted by investors.

The 91-day treasury bill remained the most preferred instrument, attracting GH¢2.25 billion in bids and accounting for 53.6 percent of the total amount tendered.

The 182-day bill received bids worth GH¢802.87 million, while investors submitted GH¢1.146 billion for the 364-day bill.

Meanwhile, yields continued their upward trend across all tenors, signalling rising borrowing costs for the government.

The yield on the 91-day bill increased by 26 basis points to 5.30 percent. The 182-day bill yield edged up to 7.13 percent from 7.08 percent, while the 364-day bill recorded the sharpest increase, rising by 39 basis points to 11.36 percent.

The latest auction results suggest a moderation in investor appetite for short-term government securities, even as yields become increasingly attractive across the treasury market.

Prince Antwi

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