Treasury Bill Auction Falls Short by 35% as Investors Shift Focus
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Ghana’s treasury bill market recorded a major shortfall last week as investor demand weakened, leaving the government unable to meet its target by more than a third.
According to auction results, bids submitted totalled GH¢3.0 billion, with GH¢2.73 billion accepted. This figure was 35.6 percent below the GH¢4.24 billion target set for the sale.
The underperformance contrasts sharply with the auction on August 8, when the Treasury secured GH¢6.68 billion out of GH¢6.89 billion tendered, reflecting stronger investor participation at the time.
Market analysts say the weaker appetite is partly due to investors diverting funds into other alternatives such as fixed deposits and repurchase agreements (repos), which currently offer competitive returns.
Breakdown of the auction shows:
- 91-day bill: GH¢2.02 billion accepted out of GH¢2.05 billion tendered.
- 182-day bill: GH¢537 million accepted from GH¢678 million submitted.
- 364-day bill: GH¢167 million taken out of GH¢272 million offered.
Yields on all maturities continued to edge downwards. The 91-day bill slipped by 7 basis points to 10.13 percent, the 182-day by 2 basis points to 12.23 percent, and the 364-day by 2 basis points to 13.08 percent.
Despite the drop in demand, government borrowing needs remain high. For the upcoming auction, authorities have set a target of GH¢6.42 billion to refinance maturing debt and support cash flow management.
