Government Falls Short of T-Bill Target by GH¢1.7 Billion Despite Early Investor Enthusiasm
Accra, Ghana — The Treasury bills (T-bills) auction held by the government fell significantly short of expectations, even amid a prior run of oversubscribed issuances and persistently falling rates.
According to the Bank of Ghana’s auction report, the government had aimed to raise GH¢8.6 billion. However, total bids amounted to only GH¢6.9 billion—leaving a substantial shortfall of GH¢1.7 billion, equivalent to a 20 percent undersubscription rate.Modern Ghana
Breaking down the figures:
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The 91-day T-bill attracted bids of GH¢5.03 billion.
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The 182-day paper garnered GH¢1.4 billion.
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The 364-day T-bill secured GH¢490 million.
Of the bids received, the government accepted GH¢6.7 billion after rejecting GH¢202 million, indicating continued investor selectivity even amid reduced demand.Modern Ghana
Despite the funding shortfall, interest rates on all T-bill tenors experienced another notable decline:
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91-day rate eased from 10.2949 percent to 10.2009 percent.
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182-day rate dropped from 12.3594 percent to 12.2540 percent.
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364-day rate slid from 13.2465 percent to 13.1022 percent.Modern Ghana
These continuous rate reductions suggest progress toward the government’s goal of achieving single-digit borrowing costs—creating more fiscally sustainable conditions for servicing public debt.Modern Ghana
Looking ahead, the Bank of Ghana is preparing for the next T-bill auction with the s
ame GH¢8.6 billion target. Market watchers are anxiously awaiting to see whether investor appetite will recover or if the current trend of subdued demand will persist.Modern Ghana
Source: My News Ghana
