Ghana Government misses Treasury-bill target amid rate discipline

The Ghanaian government fell short of its Treasury-bill target during a recent Bank of Ghana auction. While total bids reached GH¢8.20 billion, the Treasury accepted only GH¢7.21 billion, leaving the auction approximately 9.59% below the GH¢7.97 billion target.

Demand was most concentrated in the shortest-term securities. The 91-day bill saw GH¢4.56 billion in bids, with GH¢4.52 billion accepted. The 182-day bill attracted GH¢2.07 billion in bids, of which GH¢1.81 billion to GH¢1.82 billion was accepted.

The Treasury showed significant price discipline regarding longer-term debt. For the 364-day bill, investors submitted GH¢1.56 billion, but the government accepted only GH¢867.93 million, rejecting nearly 44.5% of the offers to avoid higher interest rates. Despite the target shortfall, interest rates on the yield curve showed a downward trend, with the 91-day bill yield dropping 11 basis points to 4.69%.