Ghana’s Treasury Bill market remained under pressure last week as the government failed to meet its issuance target for the third straight week. The shortfall underscores persistent challenges in attracting sufficient investor participation amid rising yields and tight liquidity conditions.
Data from the Bank of Ghana shows the latest auction recorded a GH¢672 million shortfall, representing a 10.45% under-subscription. Investors tendered GH¢5.8 billion against a target of GH¢6.42 billion. Out of this, GH¢4.02 billion was accepted for the 91-day bill, GH¢1.32 billion for the 182-day, and GH¢397 million for the 364-day note.
Analysts say the continued under-subscription highlights government efforts to manage borrowing costs while investors demand higher returns. The market remains cautious as competing investment options and inflation concerns push yields upward.
Rates climbed across most tenors, with the 91-day bill rising by 28 basis points to 10.41%, and the 182-day up 15 basis points to 12.38%. The 364-day paper, however, eased slightly by 8 basis points to settle at 13.00%. The upward trend reflects ongoing adjustments in investor risk appetite and government’s funding strategy.
Despite recent setbacks, the government plans to return to the market this week, targeting GH¢6.72 billion in fresh issuance. Market watchers will closely monitor subscription levels and yield movements as fiscal pressures persist in the second half of the year.
Source: Citi newsroom