Investor demand for Treasury bills continued to weaken last week, with the government missing its issuance target by 29.85 percent.
Latest data from the Bank of Ghana shows total bids fell short of the GH¢7.57 billion target by approximately GH¢2.45 billion, despite relatively competitive interest rates.
In all, GH¢5.11 billion was accepted across the 91-day, 182-day, and 364-day instruments out of theGH¢5.3 billion received.
The 91-day bill remained the most attractive, drawing GH¢4.44 billion in bids with near full acceptance. The 182-day bill also recorded full uptake, with GH¢521.96 million accepted.
However, demand softened at the longer end of the curve. Of the GH¢348.94 million tendered for the 364-day bill, only GH¢162.59 million was accepted, underscoring the government’s caution in locking in higher borrowing costs.
Yields edged up across all tenors. The 91-day bill rose by 10 basis points to 4.91 percent, the 182-day increased by 6 basis points to 6.77 percent, while the 364-day climbed 13 basis points to 9.97 percent.
The under-subscription raises concerns about the government’s near-term financing strategy. Compared to the previous auction, where GH¢2.95 billion was raised from GH¢3.17 billion in bids, the latest results reflect a significant increase in borrowing ambition, though not fully met.
Looking ahead, the government has set a lower target of GH¢4.89 billion for the next auction, suggesting a recalibration in response to prevailing market conditions.
For investors, the trend points to sustained opportunities in short-term instruments with relatively stable yields, while longer-dated securities may offer higher returns, albeit with greater risk.
The auction also highlights the continued dominance of primary dealers in the wholesale market, with retail investors largely accessing these instruments through the secondary market, particularly the Ghana Fixed Income Market.
