The government’s latest Treasury bill auction has been undersubscribed, reflecting a dip in investor appetite for short-term government securities, data from the Bank of Ghana has shown.
The auction, held on March 23, 2026, targeted a total of GH¢5.0 billion but attracted bids worth approximately GH¢3.7 billion. The government accepted GH¢3.26 billion of the offers, leaving a financing shortfall of about GH¢1.3 billion.
Analysts suggest the weakening demand signals a shift in market sentiment after a sustained period of declining interest rates.
Investor Preference for Short-Term Instruments
The 91-day bill remained the most sought-after instrument, drawing GH¢2.23 billion in bids—nearly 60 per cent of the total subscriptions. However, only GH¢1.76 billion was accepted.
In contrast, the government accepted all bids for the longer-dated instruments. The 182-day bill recorded subscriptions of GH¢667.12 million, while the 364-day bill received GH¢831.41 million, both of which were taken up in full.
Yields Resume Upward Trend
The auction also saw the first notable uptick in yields after a period of decline. The 91-day bill rose by 7 basis points to 4.78 per cent. The 182-day bill increased to 6.36 per cent from 6.28 per cent, and the 364-day bill climbed to 9.58 per cent from 9.41 per cent.
The rise in borrowing costs suggests a potential turning point in the yields cycle, as the government navigates its domestic borrowing programme amid evolving macroeconomic conditions.
