Ghana: Government Records Sixth Straight Treasury Bill Undersubscription

The government has recorded its sixth consecutive Treasury bill undersubscription, according to the latest auction results released by the Bank of Ghana, highlighting a persistent gap between funding targets and investor demand.

Despite the trend, the latest shortfall was marginal. The government aimed to raise GH¢4.47 billion but received bids totalling GH¢4.43 billion—an undersubscription of just under one per cent. Of this amount, approximately GH¢3.8 billion was accepted.

Short-Term Instruments Dominate Demand

Investor appetite remained strongly skewed toward short-term securities, with the 91-day Treasury bill continuing to attract the bulk of interest.

• 91-Day Bill: Recorded GH¢2.75 billion in bids, representing 62.1% of total subscriptions. The government accepted GH¢2.71 billion.
• 182-Day Bill: Attracted GH¢717.6 million, with GH¢664 million allotted.
• 364-Day Bill: Received about GH¢960 million in bids, though only GH¢522.4 million was accepted.

Yield Movements Remain Mixed

Interest rates showed mixed performance across the maturity spectrum. The yield on the 91-day bill declined slightly by 2 basis points to 4.92%, suggesting modest easing at the short end of the curve.

In contrast, the 182-day bill rose to 6.96%, up from 6.90% the previous week, while the 364-day bill held steady at 10.12%.

The continued pattern of undersubscription points to cautious investor sentiment, as market participants weigh returns against prevailing economic conditions. It also reflects ongoing adjustments in pricing as yields attempt to align with investor expectations and the government’s financing needs.