Ghana’s Treasury bill market continues to face pressure, with the government falling short of its issuance target for the third consecutive week.
The latest auction closed with a GH¢672 million shortfall, representing a 10.45% under-subscription. Data from the Bank of Ghana shows that investors tendered GH¢5.8 billion against the government’s target of GH¢6.42 billion.
Breakdown of the results indicates that GH¢4.02 billion was accepted from GH¢4.04 billion in bids for the 91-day bill, GH¢1.32 billion from GH¢1.33 billion for the 182-day bill, and GH¢397 million from GH¢430 million for the 364-day paper.
Analysts say the persistent under-subscription reflects government’s attempts to keep borrowing costs in check at a time when investors are demanding higher yields due to tighter liquidity and competing investment instruments.
Yields edged up across most maturities, with the 91-day bill rising by 28 basis points to 10.41% and the 182-day bill gaining 15 basis points to 12.38%. The 364-day, however, bucked the trend, easing slightly by 8 basis points to 13.00%.
Government falls short of T-bill target for third week, yields climbDespite the shortfall, government is expected to return to the market this week with a fresh target of GH¢6.72 billion to refinance maturities and fund short-term obligations.
