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Investor appetite for Ghana’s Treasury bills softened further last week, with the government falling short of its target for the second consecutive auction.
According to the Bank of Ghana’s auction results, the Treasury sought to mobilise GH¢5.68 billion across the 91-, 182-, and 364-day bills but received only GH¢3.9 billion in bids — translating to a 30.45% undersubscription.
The 91-day bill continued to dominate investor preference, attracting GH¢3.07 billion in bids, out of which GH¢2.97 billion was accepted.
The 182-day bill recorded GH¢613 million in bids, with GH¢608 million accepted, while the 364-day bill received GH¢257 million, of which GH¢254 million was accepted.
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Market yields edged upward across all maturities as the Treasury accepted slightly higher-yield bids to manage the shortfall.
- The 91-day bill increased to 11.02%, up 10 basis points from the previous 10.92%.
- The 182-day bill rose to 12.66%, a 5-basis-point uptick.
- The 364-day bill climbed to 13.08%, up from 13.01%.
Analysts say the muted demand reflects investor caution, particularly among institutional players who currently favour higher-returning alternatives such as fixed deposits and equities. The relative attractiveness of these instruments continues to weigh on short-term government securities.
With the latest undersubscription adding pressure to the Treasury’s short-term funding operations, attention now shifts to the upcoming auction, where the government aims to raise a higher target of GH¢6.42 billion across the three maturities.
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