T-bills: Investor demand weakens again; auction sees GH₵1.4bn undersubscription

Investor demand for Treasury bills on the money market dropped by 25.27% this week, as the government fell short of its issuance target.

According to the latest auction results from the Central Bank, the government missed its Treasury bill auction target by GH₵1.4 billion.

This under-subscription follows a week where the government had exceeded its target.

At the close of this week’s auction, the government secured GH₵4.3 billion from its short-term instruments, falling short of the GH₵5.8 billion target.

Despite the reduced demand for 91- to 364-day bills, all bids submitted by investors were accepted.

For the 91-day bills, the government accepted the entire GH₵3.7 billion tendered. Similarly, the GH₵441 million in bids for the 182-day bills and GH₵175 million for the 364-day bills were fully accepted.

Market analysts attributed the under-subscription to changing market conditions and the government’s large auction target.

Yields on the Treasury bills remained stable, with interest rates averaging between 24% and 28%.

Looking ahead, the government plans to increase its borrowing target to GH₵5.5 billion in the next Treasury bill auction.