T-Bill auction struggles continue: government misses target again as rates dip
The government has faced another setback in its treasury bill sales, marking the second unsuccessful auction this year as investor appetite wanes.
Fresh data from the Bank of Ghana’s latest auction reveals a 16% shortfall in demand for the short-term securities. The gap highlights ongoing challenges in meeting fiscal targets, with the state aiming to raise GH¢5.644 billion but securing just GH¢4.08 billion, a GH¢935.2 million deficit.
Investors showed strongest interest in the 91-day bill, which drew GH¢3.506 billion in bids and accounted for 74.47% of total submissions. Authorities accepted GH¢3.029 billion of these short-term offers, a sign of cautious selectivity.
The 364-day bill saw weaker traction, attracting GH¢619.47 million in bids, of which GH¢500.5 million were approved. Meanwhile, the 182-day bill witnessed a full uptake, with all GH¢582.8 million in tendered bids approved, a rare bright spot in the auction.
Amid the mixed results, borrowing costs edged downward slightly. Yields on the 91-day bill softened by 14 basis points to 15.71%, while the 182-day bill dipped to 16.73% from 16.92%.
The 364-day rate held firm at 18.84%, unchanged from prior levels.
By: Novire Kuuyizie Francis
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