T-Bill auction misses target by 34% as demand falls

Ghana’s latest Treasury bill auction fell short of its target by 34%, continuing a trend of weak investor demand.

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The government aimed to raise GHS 6.67 billion but secured only GHS 4.37 billion out of GHS 5.47 billion in total bids. The Treasury rejected GHS 1.09 billion in offers, according to data from the Bank of Ghana.

Breakdown of the accepted bids shows:

• 91-day bill: GHS 2.65 billion accepted from GHS 3.50 billion issued.
• 182-day bill: GHS 1.67 billion accepted from GHS 1.81 billion offered.
• 364-day bill: GHS 48 million accepted from GHS 157 million offered.

Despite missing the target, the government continued to apply selective acceptance to keep yields in check.

Interest rates edged lower across most tenors:

• The 91-day rate held steady at 14.79%.
• The 182-day bill dipped slightly to 15.46% (down 3 basis points).
• The 364-day bill dropped to 15.80% (down 11 basis points).
• Looking ahead, the government will seek GHS 7.58 billion in the upcoming auction.