The government has failed to meet its Treasury bill auction target for the sixth week in a row, according to the latest results released by the Bank of Ghana. However, the shortfall was marginal, with the auction being undersubscribed by nearly one percent.

The government sought to raise GH¢4.47 billion, but total bids tendered by investors amounted to GH¢4.43 billion. Out of the total bids received, the government opted to accept approximately GH¢3.8 billion.

Breakdown of Subscriptions

Investor interest remained heavily concentrated in short-term instruments:

- 91-Day Bill: This remained the most preferred option, attracting GH¢2.75 billion in bids—accounting for 62.1% of the total market interest. The government eventually accepted GH¢2.71 billion.

- 182-Day Bill: Bids for this mid-term instrument reached GH¢717.6 million, with the government accepting GH¢664 million.

- 364-Day Bill: This category recorded bids of approximately GH¢960 million, though the government uptake was significantly lower at GH¢522.4 million.

Mixed Yield Performance

Interest rates showed varied movement across the yield curve. The yield on the 91-day bill saw a slight decrease of 2.0 basis points, settling at 4.92%. Conversely, the 182-day bill rose to 6.96% from the 6.90% recorded the previous week. The rate for the 364-day bill remained stable at 10.12%.

The continued undersubscription suggests a slight gap between the government's financing requirements and current investor appetite, even as interest rates fluctuate to find a market balance.