T-Bill Auction: Treasury falls short by GHS1.59bn as yields tumble 

The government missed its treasury auction target by GHS 1.59 billion last week. This information comes from results published by the Bank of Ghana.

Total bids submitted were GHS 4.73 billion, below the GHS 6.43 billion target. All bids for the 91-day treasury bill were accepted in full, totaling GHS 2.98 billion.

For the 182-day bill, investors submitted GHS 869 million in bids. Of that amount, GHS 668 million was accepted. The 364-day instrument attracted GHS 1.43 billion in bids, but only GHS 1.07 billion was accepted.

This acceptance was largely through non-competitive bids. The Treasury’s selective acceptance strategy led to a decline in yields, especially on longer-term bills.

Yields fell across all tenors:
- The 91-day bill dropped by 9 basis points to 15.23%.
- The 182-day bill fell by 25 basis points to 15.77%.
- The steepest decline was for the 364-day bill, which fell by 142 basis points to 16.95%.

Analysts say this yield compression shows a strategic shift toward cost-effective borrowing amid low demand. In the upcoming auction, the government aims to raise GHS 6.69 billion.