The government has missed its Treasury bill fundraising target after raising GH¢3.16 billion at its latest auction, despite strong demand from investors.
The latest results from the Bank of Ghana show that investors submitted bids worth GH¢4.16 billion across the 91 day, 182 day and 364 day Treasury bills. However, the Treasury accepted GH¢3.16 billion, below its target of GH¢3.37 billion.
The amount accepted was GH¢207.73 million short of the target, representing an undersubscription of 6.2%.
Although investor demand exceeded the government’s financing requirement, the Treasury rejected part of the bids because they carried higher interest rates, signalling an effort to keep borrowing costs under control.
The 364 day Treasury bill attracted the highest investor interest, receiving GH¢1.86 billion in bids. Of that amount, the government accepted GH¢1.10 billion.
The 91 day bill received GH¢1.69 billion in bids, with GH¢1.63 billion accepted, while the 182 day bill attracted GH¢618.90 million, of which GH¢435.82 million was accepted.
The latest auction marks a sharp reversal from the previous week’s 60.2% oversubscription, suggesting a shift in market sentiment as investors continue to seek higher returns amid inflation concerns, growing government financing needs and expectations that monetary policy easing could continue.
Yields rose across all three tenors. The 91 day Treasury bill yield increased to 5.87% from 5.73% the previous week, while the 182 day yield climbed to 7.79% from 7.69%. The yield on the 364 day bill also rose to 12.93% from 12.82%, reflecting investors’ continued demand for higher returns, particularly on longer term government securities.
Story By Martha Seyram Jackson || Metro Digital
