The government of Ghana's Treasury bill auction did not meet its target, falling short by 22.12%

Recent data from the Bank of Ghana (BoG), the country's central bank, reveals that last week's Treasury bill (T-bill) auction fell short of its target by 22.12%. The BoG stated that the government aimed to raise GHS 8.58 billion but only secured GHS 6.69 billion. Of the GHS 5.02 billion in bids for the 91-day bill, GHS 4.99 billion was accepted. This result ends a streak of three consecutive oversubscriptions and follows a notable drop in the interest rate for the 56-day Bank of Ghana bill. For the 182-day bill, GHS 1.23 billion was accepted from GHS 1.37 billion in bids, while the 364-day bill accepted GHS 452 million from GHS 490 million in bids. Financial analysts indicate that the undersubscription reflects the government's ongoing reluctance to accept high-yield bids, along with increased liquidity entering the BoG's Monday and Wednesday auctions, which raised about GHS 6.2 billion before Friday’s sale. Yields on short-term securities continue to decline, ranging from 10% to 13%. The yield on the 91-day bill fell by 9 basis points to 10.20%, the 182-day bill by 10 basis points to 12.25%, and the 364-day bill by 14 basis points to 13.10%. The government aims to raise GHS 4.24 billion in the next auction.