T-Bill Auction Falls 30% Below Target Despite Uptick in Yields

Investor demand for Treasury bills weakened again last week, resulting in a significant undersubscription despite marginal increases in yields across all tenors.

The Treasury targeted GH¢5.68 billion in its latest auction but received only GH¢3.9 billion in bids, representing a 30.45% shortfall.

91-Day Bill Dominates Auction

Data from the Bank of Ghana shows that the 91-day instrument attracted the highest demand, recording GH¢3.07 billion in bids, out of which GH¢2.97 billion was accepted.

The 182-day bill followed with GH¢613 million tendered and GH¢608 million accepted, while the 364-day bill received GH¢257 million in bids, with GH¢254 million accepted.

Yields Edge Up

Yields rose modestly across the curve:

• 91-day: up 10 basis points to 11.02% (from 10.92%)
• 182-day: up 5 basis points to 12.66% (from 12.61%)
• 364-day: up 6 basis points to 13.08% (from 13.01%)

Weak Institutional Demand

Market analysts note that institutional investors continue to hold back, as T-bill returns remain less attractive than other investment options such as fixed deposits and equities.

To minimise the gap in its fundraising efforts, the Treasury has been accepting slightly higher-yield bids—contributing to the gradual uptick in rates.

Next Auction Target Set at GH¢6.42bn

The Treasury plans to raise GH¢6.42 billion across the 91-, 182-, and 364-day maturities in its next auction.