Government falls short of T-bill target for third week, yields climb

Ghana’s Treasury bill market continues to face pressure, with the government falling short of its issuance target for the third consecutive week.

The latest auction closed with a GH¢672 million shortfall, representing a 10.45% under-subscription. Data from the Bank of Ghana shows that investors tendered GH¢5.8 billion against the government’s target of GH¢6.42 billion.

Breakdown of the results indicates that GH¢4.02 billion was accepted from GH¢4.04 billion in bids for the 91-day bill, GH¢1.32 billion from GH¢1.33 billion for the 182-day bill, and GH¢397 million from GH¢430 million for the 364-day paper.

Analysts say the persistent under-subscription reflects government’s attempts to keep borrowing costs in check at a time when investors are demanding higher yields due to tighter liquidity and competing investment instruments.

Yields edged up across most maturities, with the 91-day bill rising by 28 basis points to 10.41% and the 182-day bill gaining 15 basis points to 12.38%. The 364-day, however, bucked the trend, easing slightly by 8 basis points to 13.00%.

Government falls short of T-bill target for third week, yields climbDespite the shortfall, government is expected to return to the market this week with a fresh target of GH¢6.72 billion to refinance maturities and fund short-term obligations.