Government’s latest Treasury bill auction has recorded its first shortfall in several months, raising fresh questions about investor sentiment in the short-term debt market.
According to the most recent auction results, the Government missed its GH¢5 billion target by about GH¢1.27 billion, after receiving total bids of GH¢3.73 billion. Out of this amount, GH¢3.26 billion was accepted.
Demand varied across the different maturities. The 364-day Treasury bill attracted GH¢831 million in bids, all of which were accepted. The 182-day instrument also saw full uptake, with GH¢667 million tendered and entirely absorbed.
The 91-day bill drew the strongest interest, emerging as the most popular among investors. It received GH¢2.23 billion in bids, although only GH¢1.76 billion was accepted.
Interest rates showed mixed movements, with an overall upward trend across the yield curve an indication of tighter pricing conditions and changing liquidity preferences. The yield on the 91-day bill rose to 4.78%, up from 4.71% in the previous auction. The 182-day rate eased slightly to 6.36% from 6.28%, while the 364-day bill edged higher to 9.58%.
As a result, the average Treasury bill rate now stands at 6.90%.
This outcome marks a shift from recent months, during which auctions were consistently oversubscribed due to strong investor demand. Analysts say the latest result could signal caution among investors as market conditions evolve.
Despite the shortfall, Government is pressing ahead with its borrowing programme. It plans to raise GH¢4.93 billion in the next auction scheduled for March 27, 2026, using the same three tenors 91-day, 182-day, and 364-day bills to finance short-term obligations and manage liquidity pressures.
