According to the Bank of Ghana, the country’s latest treasury bill auction fell short of target by 22.12%, ending a three-week run of oversubscriptions amid declining yields and shifting investor appetite.
Last week’s treasury bill auction ended in an undersubscription, with the government raising GHS 6.69 billion out of a targeted GHS 8.58 billion, missing its goal by 22.12%, according to data from the Bank of Ghana (BoG).
The result marks the first shortfall in a month, breaking a streak of three consecutive oversubscriptions. The reversal comes as interest rates on short-term securities continue to decline, with the yield on the 56-day BoG bill dropping sharply in the lead-up to the auction.
A breakdown of the figures shows that GHS 5.02 billion in bids were submitted for the 91-day bill, of which GHS 4.99 billion was accepted. For the 182-day instrument, GHS 1.23 billion was taken from GHS 1.37 billion in bids. The 364-day bill saw GHS 452 million accepted out of GHS 490 million offered.
Analysts point to the government’s firm stance against high-yield bids as a contributing factor to the undersubscription. Additionally, increased investor participation in the BoG’s Monday and Wednesday cash management auctions, which mobilised approximately GHS 6.2 billion, may have reduced demand ahead of Friday’s sale.
Yields on short-term government securities continued their downward trend:
• The 91-day yield dipped by 9 basis points to 10.20%.
• The 182-day fell by 10 basis points to 12.25%.
• The 364-day declined by 14 basis points to 13.10%.
The government is now aiming to raise GHS 4.24 billion at its next auction.
