By Benjamin Nii Nai Anyetei
Investor demand for Ghana’s Treasury bills weakened further last week, leading to another undersubscription at the government’s latest auction.
According to Bank of Ghana auction results, total bids across the 91-day, 182-day and 364-day maturities amounted to GH¢4.9 billion, falling 22.82% short of the Treasury’s GH¢6.42 billion target.
The 91-day bill remained the most attractive to investors, pulling in GH¢3.93 billion in bids, of which GH¢3.82 billion was accepted. The 182-day bill recorded GH¢749 million in bids, with GH¢744 million accepted, while the 364-day bill received GH¢266 million, out of which GH¢263 million was accepted.
Market analysts attribute the subdued participation largely to yields that remain less competitive compared to other short-term instruments in the market. They point out that the Bank of Ghana’s own bills, which typically offer more attractive returns, continue to divert institutional funds away from government Treasury issuances. Tight liquidity conditions across the financial sector have also contributed to the persistent undersubscription.
Yields showed mixed movements during the week. The 91-day bill inched up by 11 basis points to 11.13%, while the 182-day bill rose slightly by 2 basis points to 12.68%. The 364-day bill, however, dipped by 2 basis points to 13.06%.
In its next auction, the Treasury is seeking to mobilise GH¢2.86 billion across the three short-term maturities.
