The Government of Ghana has once again missed its Treasury Bill auction target, marking the eighth consecutive week of undersubscription.
The latest auction raised GH¢4.84 billion, falling short of the GH¢5.60 billion target by GH¢756 million. This persistent shortfall raises significant concerns about the government’s ability to secure necessary funding through short-term debt instruments.
Investor interest was notably concentrated in the 91-day Treasury Bill, which attracted GH¢3.90 billion in bids.
The 182-day bill saw a more modest reception, garnering GH¢748 million, while the 364-day bill faced tepid demand with bids totalling just GH¢197 million.
Despite interest rates on Treasury Bills remaining relatively steady, the ongoing undersubscription underscores the challenges the government faces in meeting its financing needs.
Yields on T-Bills experienced minor adjustments, with the 91-day bill ticking up by 0.02% to 24.90%, while the 182-day bill held firm at 26.78%. The 364-day bill yield also inched up by 0.01% to 27.91%.
These subtle shifts in yields reflect the delicate balancing act the government must perform between sustaining investor interest and managing liquidity constraints.
Looking ahead, the government aims to raise GH¢5.4 billion in its upcoming Treasury Bill auction, focusing on the 91-day, 182-day, and 364-day maturities to align with investor demand.
However, the persistent liquidity challenges that have plagued recent auctions continue to loom large over the government’s financing strategy.
