Ghana’s treasury bill market recorded its second consecutive week of significant undersubscription, with the government failing to meet its borrowing target by GH¢1.2 billion.
According to the latest Bank of Ghana auction report, investors submitted only GH¢5.5 billion in bids against the government’s GH¢6.7 billion target, representing a seventeen point nine percent shortfall.
The 91-day bill attracted the strongest investor interest at GH¢3.5 billion, followed by the 182-day instrument at GH¢1.8 billion. The 364-day bill remained the least popular, garnering merely GH¢157.18 million in bids. Despite the overall shortage, the government rejected GH¢1.1 billion of the submitted bids, ultimately accepting GH¢4.4 billion.
Concurrently, yields continued their downward trajectory across all tenors. Rates on the 91-day bill marginally decreased to fourteen point seven nine two two percent, while the 182-day declined to fifteen point four five nine zero percent. The 364-day yield fell to fifteen point seven nine nine one percent. This pattern aligns with government efforts to reduce borrowing costs through fiscal discipline.
The undersubscription streak follows a brief rebound three weeks prior, signaling renewed investor caution. Market observers now scrutinize whether this trend will persist as the government prepares for its next auction targeting GH¢7.6 billion in borrowing.
This sustained shortfall reflects ongoing challenges in Ghana’s domestic debt market despite policy measures aimed at stabilizing borrowing costs and controlling fiscal expenditure.
