Investor appetite for Treasury bills eased last week, as the government fell short of its issuance target by GH¢3.68 billion. This comes just a week after demand had rebounded strongly.
Of the GH¢2.92 billion tendered, the Treasury accepted GH¢2.89 billion, falling short of the GH¢6.57 billion target. This represents a 56% shortfall.
A breakdown from the auction results shows that the 91-day bill dominated the auction, attracting GH¢2.09 billion in bids, with GH¢2.08 billion accepted.
The 182-day bill followed, with GH¢704 million tendered and GH¢699 million accepted, while the 364-day bill drew GH¢136 million in bids, with GH¢110 million accepted.
Analysts believe the pullback stemmed from tight liquidity conditions, as some institutional investors, particularly banks, may have locked up funds in Bank of Ghana OMO bills ahead of the Treasury auction. This likely constrained participation in last week’s primary auction.
Meanwhile, yields rose sharply along the short end.
The 91-day bill rose by 16 basis points to 10.69% from 10.53%, the 182-day bill increased by 13 basis points to 12.43% from 12.30%, and the 364-day bill edged up by 6 basis points to 12.92% from 12.86% the previous week.
Looking ahead, the government aims to raise GH¢6.82 billion in the upcoming auction.