The government’s short-term borrowing efforts came under renewed pressure last week as it missed its Treasury bill target by 30 percent, raising GH¢4.76 billion against a planned GH¢6.82 billion.
Data from the Bank of Ghana show that despite the shortfall, all bids submitted were accepted — an indication of the Treasury’s growing urgency to meet its near-term financing needs.
This means the government missed its issuance target by GH¢2.06 billion.
A breakdown of the results reveals that the 91-day bill dominated investor participation, attracting bids worth GH¢4.87 billion, all of which were taken up.
The 182-day bill followed with GH¢785 million tendered and taken up, while the 364-day bill recorded bids totalling GH¢487 million, which were also fully accepted.
Market watchers say the missed target underscores the strain on the government’s domestic financing strategy, as a series of underperforming auctions in recent weeks have left a widening gap in short-term funding.
“This may explain the Treasury’s decision to ramp up its acceptance of bids in an effort to bridge the funding gap ahead of the November budget presentation,” Databank Research noted.
Yields reflected mixed market sentiment across the short-term curve. The 91-day bill eased slightly by two basis points to 10.67%, while the 182-day bill edged up to 12.46%. The 364-day bill, meanwhile, fell by five basis points to 12.87%.
Analysts say the yield movements point to a cautious investor stance, as uncertainty around fiscal adjustments and the upcoming budget weigh on sentiment.
The next auction, scheduled for this week, seeks to raise GH¢5.32 billion — a test of whether investor appetite will recover as the year draws to a close.
