Investor appetite for Treasury bills continued to soften last week, with the government recording yet another undersubscription at the latest auction.
Total bids submitted across the 91-, 182- and 364-day maturities amounted to GH¢4.9 billion, falling 22.82 percent short of the Treasury’s GH¢6.42 billion target.
Latest Bank of Ghana auction data shows that the 91-day bill dominated activity, attracting GH¢3.93 billion in bids, of which GH¢3.82 billion was accepted. The 182-day bill received GH¢749 million, with GH¢744 million accepted, while the 364-day bill saw GH¢266 million in tenders, out of which GH¢263 million was accepted.
Market analysts say institutional participation remains subdued, largely because the yields on Treasury bills are less competitive compared to alternative short-term instruments.
They note that the Bank of Ghana’s ongoing sale of its own bills—often at more attractive yields—continues to draw banks away from Treasury issuances. This, coupled with a tight liquidity environment, has reinforced the undersubscription trend.
Yields moved marginally across the curve. The 91-day bill edged up by 11 basis points to 11.13 percent from 11.02 percent the previous week. The 182-day bill rose by 2 basis points to 12.68 percent, while the 364-day bill slipped by 2 basis points to 13.06 percent.
In its next auction, the Treasury aims to raise GH¢2.86 billion across the three short-term maturities.