Last week, Treasury bills were undersubscribed, with investor demand falling short of the government’s target of GHS 4.93 billion by GH¢1.69 billion.
Auction results from the Bank of Ghana show that total bids for the 91-day, 182-day and 364-day instruments reached GHS 3.94 billion, out of which GHS 3.23 billion was accepted.
A breakdown of the issuance indicates that investors still favoured the 91-day bill, tendering approximately GH¢2.55 billion; however, only GHS 2.21 billion was accepted.
Similarly, the 182-day bill recorded GHS 762.97 million in bids, with GHS 661 million taken up, while the 364-day bill saw GHS 625.12 million in bids, but only GHS 359.17 million was accepted.
Interest rates, however, continue to edge up. The 91-day bill rate rose by 3 basis points to 4.81 percent from 4.78 percent. The 182-day yield increased by 26 basis points to 6.62 percent from 6.36 percent, while the 364-day bill climbed by 19 basis points to 9.77 percent.
The marginal uptick in yields reflects a repricing of investor demand, signalling likely emerging uncertainties around inflation expectations. It also signals a repositioning of market expectations ahead of the anticipated Treasury bond issuance, which has weighed on demand.
Looking ahead, the Treasury plans to raise a target of GH¢4.67 billion in the next auction, to cover both upcoming maturities and its short term needs.
