Government misses T-Bills target for first time in over two months

The government failed to achieve its treasury bills target for the first time in more than two months, after investors submitted bids marginally below the amount sought at the latest primary market auction.

According to auction results released by the Bank of Ghana, the government received GH¢3.956 billion in bids against a target of GH¢4.121 billion, representing a shortfall of approximately GH¢165 million, or 4 percent. The government accepted GH¢2.195 billion of the bids tendered.

The 91-day bill was the most subscribed, attracting GH¢2.28 billion in bids — 57.8 percent of the total — of which GH¢1.87 billion was accepted. The 364-day bill saw GH¢1.214 billion tendered, with only GH¢110.52 million accepted. The 182-day bill drew GH¢452.79 million in bids, with GH¢224.96 million accepted.

Rate Movements

Interest rates declined across the medium and long ends of the curve. The 182-day bill fell by 3 basis points to 6.48 percent, while the 364-day bill dropped to 9.98 percent from 10.10 percent the previous week. The yield on the 91-day bill remained unchanged at 4.69 percent.

The auction marks a sharp reversal from recent weeks, when strong investor appetite consistently drove oversubscription. At the September 7 auction, investors tendered GH¢9.94 billion against a target of GH¢6.55 billion — an oversubscription of 51.6 percent — with the government accepting GH¢8.38 billion. Yields had been declining steadily, with the 91-day rate falling to 4.80 percent at that auction.

Background

The government’s issuance calendar for July to September 2026 targets a net debt issuance of approximately GH¢15.39 billion, financed through the 91-day, 182-day, and 364-day Treasury bills. The T-bill market has been a critical source of short-term financing for the government, which borrowed about GH¢120 billion from the market between January and April 2026 alone.

Despite recent weeks of strong demand, the market has experienced periods of undersubscription earlier in the year. In April 2026, the government recorded six consecutive undersubscribed auctions, with the shortfall reaching 32 percent at one point. Demand has since recovered, with investors favouring the 364-day bill for its higher yield, though the latest auction suggests a more cautious stance from market participants.

The Ministry of Finance is expected to announce the target for the next auction in the coming days.