Government’s treasury bill undersubscription issues have carried over into the last quarter of the year, as it managed to raise just over 60% of its GH¢5.98 billion target during the first auction of the quarter held last Friday.

In the third quarter, the government experienced a GH¢20 billion shortfall, failing to meet its target in 11 out of the 13 weeks, including a nine-week streak of undersubscription.

Despite setting a lower target of GH¢5.98 billion for auction 1923, after only raising 64.10% of its GH¢7.438 billion target for auction 1922, the results of this auction have worsened.

Last Friday, the government received and accepted bids totaling GH¢2.91 billion for 91-day bills, GH¢572.95 million for 182-day bills, and GH¢189.95 million for 364-day bills, resulting in total bids of GH¢3.674 billion—equivalent to just 61.4% of the set target.

However, the government found some relief as the cost of borrowing slowed last week, with average interest rates dropping marginally. The 91-day, 182-day, and 364-day bills sold for average rates of 25.4568%, 26.80%, and 28.5173%, respectively, compared to 25.6439%, 26.9248%, and 28.6785% from the previous week.

This slight reduction could be seen as a positive sign, especially considering that inflation rose for the first time in six months, despite the central bank easing the policy rate to 27% last week.

In response to these challenges, the government has once again lowered its weekly target, aiming to raise GH¢4.565 billion in the upcoming tender 1924.