Last week, investor interest in Treasury bills within the primary market remained low, as the most recent auction did not meet the government’s fundraising goal by GH¢1.07 billion.
According to results published by the Bank of Ghana, investors placed bids totaling GH¢4.21 billion across the 91-day, 182-day, and 364-day Treasury bill tenors.
The government accepted the full amount tendered, successfully raising GH¢4.21 billion.
However, with a target of GH¢5.27 billion, the accepted amount resulted in a funding shortfall of GH¢1.07 billion, reflecting an under-subscription rate of 20.2%.
The 91-day Treasury bill continued to represent the largest portion of investor interest, drawing bids amounting to GH¢2.26 billion, all of which were accepted by the government.
The 182-day bill saw bids totaling GH¢802.87 million, with the government approving the entire amount tendered.
In addition, investors submitted GH¢1.15 billion for the 364-day bill, and the government accepted all bids received, indicating that there were no rejections across any of the three tenors.
Yields increased across the board. The yield on the 91-day bill rose by 26 basis points to 5.30% from 5.04% in the previous auction.
The yield for the 182-day bill also increased by 5 basis points to 7.13% from 7.08%, while the 364-day bill saw a rise of 39 basis points to 11.36% from 10.97%.
This outcome indicates a significant decline in investor appetite for government securities, despite the government accepting all submitted bids.
Looking forward, the government intends to raise GH¢4.60 billion in its upcoming auction.
