Investor interest in Treasury bills continued to decline last week, as the government experienced yet another undersubscription during the most recent auction.
The total bids submitted for the 91-, 182-, and 364-day maturities reached GH¢4.9 billion, which is 22.82 percent below the Treasury’s target of GH¢6.42 billion.
Recent data from the Bank of Ghana’s auction indicates that the 91-day bill was the most active, garnering GH¢3.93 billion in bids, of which GH¢3.82 billion was accepted. The 182-day bill attracted GH¢749 million, with GH¢744 million accepted, while the 364-day bill received GH¢266 million in tenders, of which GH¢263 million was accepted.
Market analysts suggest that institutional participation remains low, primarily due to the yields on Treasury bills being less attractive compared to other short-term investment options.
They observe that the Bank of Ghana’s ongoing issuance of its own bills—often offering more appealing yields—continues to divert banks from participating in Treasury offerings. This situation, combined with a constrained liquidity environment, has further solidified the trend of undersubscription.
Yields have shifted slightly across the curve. The 91-day bill increased 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 decreased by 2 basis points to 13.06 percent.
In its upcoming auction, the Treasury plans to raise GH¢2.86 billion across the three short-term maturities.
