Ghana’s Treasury bill market has recorded its fifth consecutive undersubscription, with the latest auction falling short of the government’s borrowing target even as yields continued their gradual upward climb.
At the Tender 2003 auction, government targeted GH¢4.890 billion but received total bids of GH¢4.489 billion, resulting in a shortfall of GH¢401.45 million, equivalent to 8.21 percent below target. Of the bids submitted, government accepted GH¢4.090 billion, leaving a funding gap of GH¢799.70 million against the original target.
Despite falling short of its borrowing goal, government remained selective, rejecting GH¢398.25 million in bids. The decision signals continued prioritisation of borrowing cost control over volume, as authorities avoid locking in higher rates that could worsen debt servicing obligations.
The 8.21 percent shortfall is notably smaller than the near 30 percent deficit recorded at the previous auction, where government missed a GH¢7.57 billion target by approximately GH¢2.45 billion. The narrowing gap suggests demand may be stabilising, though it remains below the levels seen earlier in the year.
Yields rose across all three tenors. The 91-day bill climbed from 4.9106 percent to 4.9480 percent, the 182-day bill increased from 6.7760 percent to 6.9099 percent, and the 364-day bill moved from 9.9788 percent to 10.1283 percent. The 364-day bill has now crossed the 10 percent mark for the first time in recent weeks, reflecting steady upward pressure at the longer end of the curve.
Investor appetite remained concentrated at the short end. The 91-day bill attracted GH¢2.6 billion of total bids, the 364-day bill drew GH¢1.2 billion, and the 182-day bill recorded GH¢771.16 million.
The fifth consecutive miss points to a market in transition. After months of oversubscription driven by abundant liquidity and sharp yield declines, domestic investors are recalibrating their appetite for government paper at compressed rates. If the trend persists, authorities may face pressure to adjust borrowing strategy further or seek alternative financing sources to meet near-term obligations.
