Investor interest in Treasury bills has seen a significant decline of 25.27% this week, as the government failed to meet its issuance target.

Recent auction results from the Central Bank revealed that the government fell short by GH₵1.4 billion in its Treasury bill auction.

This comes on the heels of a previous week when the government had successfully surpassed its target.

By the end of this week's auction, the government managed to secure GH₵4.3 billion from its short-term instruments, falling short of the targeted GH₵5.8 billion.

While demand for 91- to 364-day bills decreased, all investor bids submitted were fully accepted. The government accepted the complete GH₵3.7 billion tendered for the 91-day bills, as well as the GH₵441 million bids for the 182-day bills and GH₵175 million for the 364-day bills.

Market analysts pointed to shifting market conditions and the government’s ambitious auction target as reasons for the under-subscription.

Despite the reduced demand, yields on Treasury bills remained stable, with interest rates averaging between 24% and 28%.

Looking forward, the government plans to raise its borrowing target to GH₵5.5 billion in the upcoming Treasury bill auction.