The Government of Ghana has once again fallen below its treasury bill issuance objective, marking the seventh consecutive week of underperformance, as market participants continue to demand more attractive returns before committing funds.
Data released by the Bank of Ghana indicates that the latest auction registered an undersubscription of approximately ten percent relative to the intended target, representing a wider shortfall compared to the preceding week and reinforcing growing unease surrounding sustained investor reluctance toward short term government securities.
Total investor participation reached slightly above GH¢4.48 billion, falling short of the projected GH¢4.89 billion benchmark. Of this amount, authorities opted to accept roughly GH¢4.43 billion in bids, reflecting a cautious approach to cost management amid rising yield expectations.
The ninety one day instrument once again dominated demand, attracting bids valued at about GH¢1.89 billion, which constituted approximately forty two percent of total submissions. Accepted bids for this tenor stood marginally lower at GH¢1.88 billion, indicating near full uptake despite the broader market hesitation.
Activity within the one hundred and eighty two day segment remained comparatively modest, with bids amounting to GH¢764.25 million. The government absorbed virtually the entire volume, signalling stable but limited appetite at the medium short term horizon.
Meanwhile, the three hundred and sixty four day instrument recorded demand in the region of GH¢1.82 billion, out of which slightly above GH¢1.78 billion was accepted, reflecting selective participation as investors weigh duration risk against yield compensation.
Across the yield curve, borrowing costs continued to edge upward, particularly at the longer end. The rate on the ninety one day bill remained unchanged at 4.92 percent, suggesting short term rate stability despite weak demand conditions.
In contrast, the yield on the one hundred and eighty two day instrument rose marginally to 6.97 percent from 6.96 percent in the prior auction, while the rate on the three hundred and sixty four day bill advanced by seven basis points to settle at 10.19 percent, underscoring intensifying pressure for improved returns on longer dated securities.
The persistent pattern of undersubscription reflects a recalibration of investor expectations within the domestic debt market, where participants are increasingly unwilling to deploy capital without commensurate yield adjustments. This evolving dynamic presents a continuing challenge for fiscal authorities as they seek to balance borrowing requirements with cost containment in an environment of tightening financial conditions.
