Government fell short of its Treasury bill target in its most recent auction, missing the mark by approximately GH¢1.3 billion amid tighter liquidity conditions and more cautious investor participation.

Auction results indicate that against a target of GH¢5.01 billion, total bids submitted amounted to GH¢3.73 billion, out of which GH¢3.27 billion was accepted.

Demand was particularly subdued at the short end of the market. Of the GH¢2.23 billion bids tendered for the 91-day bill, only GH¢1.67 billion was accepted, signalling a more selective approach by investors and tighter pricing conditions.

In contrast, longer-dated instruments continued to attract strong interest. Government accepted all bids for the 182-day and 364-day bills, which stood at GH¢667.12 million and GH¢831.41 million respectively.

Interest rates recorded a marginal increase across all tenors, marking a slight shift from the recent downward trend.

The yield on the 91-day bill rose to 4.78 per cent from 4.71 per cent, while the 182-day bill climbed to 6.36 per cent from 6.28 per cent. Similarly, the 364-day bill increased to 9.58 per cent, up from 9.41 per cent.

The rise in yields reflects a more cautious market outlook and evolving liquidity conditions, even as government continues to depend on the domestic market to finance its short-term obligations.

For the next auction, government is aiming to raise approximately GH¢4.93 billion.