Ghana’s government has missed its latest Treasury bill target, raising GH¢3.16 billion against a goal of GH¢3.37 billion, despite investor bids exceeding GH¢4.16 billion. The shortfall reflects Treasury’s rejection of higher‑rate bids as it seeks to contain borrowing costs amid rising yields and inflationary pressures.
Investor demand remained strong, with bids spread across the 91‑day, 182‑day, and 364‑day bills. However, the government accepted only GH¢3.16 billion, leaving a financing gap of GH¢207.73 million, representing a 6.2 percent undersubscription.
The breakdown shows that the 91‑day bill attracted GH¢1.69 billion in bids, of which GH¢1.63 billion was accepted. The 182‑day bill recorded GH¢618.90 million in bids, but only GH¢435.82 million was taken. For the 364‑day bill, investors offered GH¢1.86 billion, with GH¢1.10 billion accepted.
Yields continued their upward trend, with the 91‑day bill rising to 5.87 percent from 5.73 percent, the 182‑day bill climbing to 7.79 percent from 7.69 percent, and the 364‑day bill increasing to 12.93 percent from 12.82 percent. Analysts say the movement reflects investor demand for higher returns amid inflation concerns and expectations of continued monetary easing.
The undersubscription contrasts sharply with the previous week’s 60.2 percent oversubscription, signalling a shift in investor sentiment. While demand remains robust, the government’s refusal to accept higher‑rate bids underscores its balancing act between meeting financing needs and maintaining debt sustainability.
Market watchers warn that persistent yield increases suggest investors are wary of fiscal risks, and repeated undersubscriptions could complicate the Treasury’s borrowing strategy. Rejecting high‑rate bids may help contain costs in the short term, but it risks leaving financing gaps that could pressure government spending plans.
