Demand for Ghana’s treasury bills continues to decline, with the latest data from the Bank of Ghana showing the government missed its target by a significant GH¢2.31 billion in the most recent auction. 

The government accepted bids totalling GH¢3.67 billion for its short-term instruments, falling short of the GH¢5.98 billion target.

This represents an undersubscription of about 38.5% for the sale of the 91, 182, and 364-day treasury bills, with uptakes recorded at GH¢2,911.51 million, GH¢572 million, and GH¢189 million, respectively.

Yields on these instruments saw slight decreases, with the 91-day bill falling by 18 basis points to 25.46%, the 182-day bill down by 12 basis points to 26.80%, and the 364-day bill slipping by 16 basis points to 28.52% week-on-week.

Market analysts attribute the downward trend in yields to investors' reaction to the Bank of Ghana's recent decision to reduce the 56-day yield from 29% to 27%, which followed the Monetary Policy Committee’s sharp cut in the policy rate from 29% to 27%.

Looking ahead, the government has set a borrowing target of GH¢4.5 billion for the next T-bill auction, signalling efforts to revive market interest and regain investor confidence amid dwindling demand.