Demand for treasury bills continued to show weakness during the second week of July, as the Treasury reported a 39.68% undersubscription.
Recent data from the Bank of Ghana reveals that while the government aimed for GHC7.52 billion, it only received total bids amounting to GHC4.53 billion, falling short of its target by GHC2.99 billion.
The figures indicate that GHC3.63 billion of the GHC3.71 billion in bids for the 91-day bill were accepted. In the case of the 182-day bill, GHC804 million was received from GHC814 million in bids. For the 364-day bill, GHC100 million was accepted out of GHC1.6 billion in bids.
Yields on short-term securities experienced a slight increase, reversing a trend of steady declines that had persisted since February.
The yield for the 91-day bill rose by 9 basis points to 14.65%, while the 182-day yield increased by 1 basis point to 15.02% from 15.01%. The yield for the 364-day bill saw a rise of 25 basis points to 15.41%.
Market analysts suggest that the recent rise in yields may indicate a market response to pricing pressures in light of significant upcoming maturities.
Looking forward, the government plans to raise GHC5.43 billion at the forthcoming auction.
