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.
