T-BILL AUCTION FALLS SHORT FOR THIRD WEEK RUNNING

For the third consecutive week, the Government of Ghana has faced an undersubscription in its Treasury bill auction, signaling declining investor appetite for short-term government securities.

In the latest auction, the government aimed to raise GH¢4.23 billion but managed to secure only GH¢2.48 billion — representing a subscription rate of just 58.67%. This follows similar results from the previous two weeks, raising concerns about liquidity constraints and waning investor confidence.

Analysts attribute the undersubscription trend to several factors, including tightening monetary conditions, inflationary pressures, and possible shifts in investor preference towards more attractive or stable investment options.

The persistent shortfalls may pose challenges for the government’s short-term financing strategy, especially as it seeks to manage debt obligations and maintain fiscal stability.