T-Bills undersubscribed by GHS 1.7bn as Gov’t misses GHS 5.6bn target

In a disappointing turn of events, the Government of Ghana faced a setback as it missed its target in the auction of its 91, 182, and 364-day treasury bills on Friday, December 1, 2023.

The T-Bills, which had a target of GHS 5,618 million, were undersubscribed by GHS 1,703 million, resulting in a total amount raised of GHS 3,915 million.

The Bank of Ghana (BoG) released the auction results report, revealing that primary dealers tendered bids amounting to GHS 1,339 million for the 91-day T-Bills. The government accepted all the bids received for this particular maturity.

For the 182 and 364-day T-Bills, bids reached GHS 722 million and GHS 1,854 million, respectively. Once again, the government accepted all the bids tendered for these shorter-term maturities.

In total, the government was able to raise GHS 3,915 million from the auction, falling short of its target by GHS 1,703 million.

The undersubscription of the T-Bills auction suggests that investor demand was lower than anticipated, potentially reflecting cautious sentiments.

The government’s inability to meet its target may have implications for its budgetary planning and financing needs.

Despite this setback, the government is determined to raise the necessary funds and plans to make another attempt in the T-Bills market.

On Friday, December 8, 2023, Government will seek to raise GHS 3,919 million through a fresh auction. This upcoming auction will be closely monitored by market participants and analysts to gauge investor appetite and the government’s ability to meet its funding requirements.

The outcome of the next T-Bills auction will be crucial in determining the government’s ability to access the necessary capital to support its fiscal plans and ensure the smooth functioning of the economy.

Market participants and investors will be keeping a close eye on the government’s efforts to mobilize funds and its overall fiscal management. The outcome of the upcoming T-Bills auction will provide valuable insights into investor confidence and the government’s ability to meet its financing needs in a challenging economic environment.

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