The government’s short-term debt market has recorded its first undersubscription in recent months, signalling a potential shift in investor demand dynamics amid evolving yield conditions.
Latest auction results show that the Government fell short of its GH¢5 billion target by approximately GH¢1.27 billion, with total bids amounting to GH¢3.73 billion. Of this, GH¢3.26 billion was accepted.
A breakdown of the issuance indicates that the 364-day Treasury bill attracted GH¢831 million in bids, all of which were accepted. Similarly, the 182-day bill recorded GH¢667 million in bids, all of which were taken up.
The 91-day bill, however, emerged as the most subscribed instrument, drawing GH¢2.23 billion in bids, out of which GH¢1.76 billion was accepted.
Yields broadly trended upwards across the curve, reflecting tightening pricing conditions and possible shifts in liquidity preference. The rate on the 91-day bill increased to 4.78% from 4.71% in the previous auction, while the 182-day yield declined marginally to 6.36% from 6.28%. The 364-day bill rate edged up to 9.58%.
Consequently, the average interest rate on Treasury bills now stands at 6.90%.
The undersubscription follows a prolonged period of strong investor demand that had consistently resulted in oversubscribed auctions.
Looking ahead, the Government is targeting to raise GH¢4.93 billion in the next auction scheduled for March 27, 2026, across the 91-day, 182-day, and 364-day tenors, as it continues to finance short-term obligations and manage liquidity conditions.
