The latest Treasury bill auction in Ghana has recorded a substantial undersubscription of approximately 40%, despite a marginal increase in yields. According to the Bank of Ghana’s auction results, the government aimed to raise GH₵ 7.52 billion but only secured GH₵ 4.53 billion in bids, resulting in a shortfall of GH₵ 2.99 billion.
Breakdown of Accepted Bids:
– 91-Day Bill: GH₵ 3.71 billion tendered, GH₵ 3.63 billion accepted
– 182-Day Bill: GH₵ 814 million tendered, GH₵ 804 million accepted
– 364-Day Bill: GH₵ 1.6 billion tendered, GH₵ 100 million accepted
Yield Trends:
– 91-Day Yield: Increased by 9 basis points to 14.65%
– 182-Day Yield: Rose by 1 basis point to 15.02%
– 364-Day Yield: Climbed 25 basis points to 15.41%
Analysts attribute the undersubscription to changing market conditions and the government’s large auction target. The government is set to increase its borrowing target to GH₵ 5.43 billion in the upcoming auction. This development raises concerns about investor confidence in the government’s short-term instruments and may impact fiscal policy and economic stability.