Dr. Cassiel Ato Baah Forson, Minister for Finance
The government fell significantly short of its fundraising target at last week’s Treasury-bill auction, missing its goal by almost 23 percent as investor demand continued to weaken.
According to auction results released by the Bank of Ghana, the Treasury aimed to raise GH¢6.42 billion across the 91-, 182- and 364-day maturities but secured only GH¢4.9 billion in total bids, 22.82 percent below the target.
The 91-day bill remained the most active, attracting GH¢3.93 billion in bids, with GH¢3.82 billion accepted. The 182-day bill recorded GH¢749 million in tenders, of which GH¢744 million was accepted, while the 364-day bill saw GH¢266 million in bids, with GH¢263 million accepted.
Some analysts said the shortfall reflects subdued institutional participation, driven largely by the relatively low yields on Treasury bills compared with alternative short-term investments.
The Bank of Ghana’s continued sale of its own bills, often offering more attractive rates, has also pulled banks away from government securities, intensifying the undersubscription trend. A tight liquidity environment has further weakened demand.
Yields saw only marginal movement. The 91-day bill rose by 11 basis points to 11.13 percent, the 182-day bill edged up by 2 basis points to 12.68 percent, while the 364-day bill declined slightly by 2 basis points to 13.06 percent.
For the upcoming auction, the Treasury plans to raise GH¢2.86 billion across the three short-term maturities.
A Business Desk Report