The Government of Ghana fell short of its Treasury bill target for the past week, raising GH¢4.61 billion against the projected GH¢5.32 billion — a shortfall of 13%. Data from the Bank of Ghana revealed that, despite the miss, all bids submitted during the auction were fully accepted, underscoring the government’s continued appetite for short-term borrowing.
According to auction figures, the 91-day Treasury bill remained the most sought-after, attracting GH¢3.75 billion in bids. The 182-day bill followed with GH¢567 million, while the 364-day instrument received GH¢309 million. The continued dominance of the shorter-tenor bill reflects investor preference for liquidity amid shifting market dynamics.
Market observers believe the Treasury’s borrowing strategy has entered a recalibration phase. With its near-term financing needs largely met, the government appears to be prioritizing funding targets over strict yield control — a move that could influence future rate trends in the money market.
Yields edged up across all maturities, signaling cautious investor sentiment. The 91-day bill rose by 14 basis points to 10.81%, while the 182-day bill gained 3 basis points to 12.49%. The 364-day bill also increased slightly, moving up 8 basis points to close at 12.95%. These rate movements suggest a modest tightening in short-term borrowing conditions.
Looking ahead, the government plans to raise GH¢6.83 billion in its next auction, signaling a renewed drive to bolster liquidity and meet its fiscal obligations. Market watchers will be keen to see whether the higher target attracts stronger investor participation amid the rising yield environment.
source: Citi newsroom