Ghana Treasury Bills Undersubscribed by 50% as Yields Decline Across All Tenors

Treasury bill auctions in Ghana continue to struggle with weak investor demand, as the latest primary market results revealed a significant undersubscription. Data from the Bank of Ghana shows that the government raised GH¢3.39 billion from investors against a target of GH¢6.72 billion, reflecting a shortfall of nearly 50 percent.

Investor participation across the 91-day, 182-day, and 364-day maturities amounted to GH¢3.5 billion in total bids. The Treasury accepted GH¢2.01 billion out of GH¢2.05 billion tendered for the 91-day bill, GH¢1.12 billion out of GH¢1.14 billion for the 182-day, and GH¢194 million out of GH¢321 million offered for the one-year note.

Market watchers suggest that the persistent undersubscription is linked to subdued demand, partly driven by the availability of more attractive alternative investment options. Analysts also note that the consistent shortfalls could be a reflection of broader investor concerns about returns and liquidity in the domestic market.

Despite the weak subscription levels, yields on all three maturities edged lower. The 91-day bill dropped to 10.32 percent from 10.41 percent, the 182-day fell marginally to 12.37 percent from 12.38 percent, while the 364-day bill dipped to 12.99 percent from 13.00 percent.

Looking forward, the government has set a target of GH¢3.78 billion for the next auction. Market participants will be closely watching to see if investor sentiment improves or if the ongoing trend of undersubscription persists, potentially signaling a deeper structural shift in demand for short-term government securities.

Source: Citi newsroom