The government’s Treasury bill (T-bill) auction has been massively undersubscribed for the second consecutive time, falling short of its target by GH¢1.5 billion.

The latest auction saw total bids amounting to GH¢4.1 billion against a target of GH¢5.6 billion.

This development was highlighted in a statement issued by the Bank of Ghana on Friday, March 28. The statement revealed that despite efforts to raise the full amount, investor participation remained lower than expected, reflecting ongoing liquidity constraints in the market.

The undersubscription follows a similar trend from the previous auction, raising concerns about the government’s ability to meet its short-term financing needs through domestic borrowing.

Analysts suggest that factors such as high inflation, market uncertainty, and investor preference for alternative assets may have contributed to the weak demand.

With the persistent shortfall in T-bill subscriptions, the government may need to explore alternative financing options or introduce measures to boost investor confidence in upcoming auctions.

Financial experts continue to monitor the situation closely, as it could have broader implications for fiscal policy and economic stability.