Ghana’s Treasury bill market remains under strain as the government missed its fundraising target for the third consecutive week, underscoring persistent investor caution and rising borrowing costs.
The latest auction, which closed on Friday, recorded a GH¢672 million shortfall, representing a 10.45% under-subscription. According to Bank of Ghana data, total bids amounted to GH¢5.8 billion against a target of GH¢6.42 billion.
Breakdown of Auction Results
- 91-day bill: GH¢4.02 billion accepted from GH¢4.04 billion in bids
- 182-day bill: GH¢1.32 billion accepted from GH¢1.33 billion in bids
- 364-day bill: GH¢397 million accepted from GH¢430 million in bids
The results reflect the government’s ongoing balancing act—trying to rein in borrowing costs while investors demand higher returns in light of tighter market conditions and competing investment options.
Interest rates continued to climb across most maturities. The 91-day bill jumped 28 basis points to 10.41%, while the 182-day rose 15 basis points to 12.38%. In contrast, the 364-day bill eased marginally, dipping 8 basis points to 13.00%.
Analysts say the upward trend in yields highlights lingering concerns about inflation, fiscal pressures, and the sustainability of government borrowing.
Despite the recent under-subscriptions, Treasury bills remain a critical financing source for the state, particularly amid constrained access to international capital markets.
The government will return to the market this week, aiming to raise a higher target of GH¢6.72 billion. Market watchers expect continued investor appetite but note that yields could climb further if fiscal risks remain elevated.
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