T-bills undersubscribed as investors favour fixed deposits

Treasury bills have fallen short of expectations as investors increasingly move their funds into Fixed Deposits and other money market instruments.

Auction results from the Bank of Ghana showed T-bills were undersubscribed by 30 per cent. Out of a target of GHS6.824 billion, only GHS4.760 billion was raised.

For the first time in several weeks, all bids were accepted.

The 91-day bill attracted the largest share of interest, accounting for just over 73 per cent of total bids, equivalent to GHS3.4 billion.

The 182-day bill received GHS785.31 million, while the 364-day bill drew GHS487.5 million.

Yields on the T-bills moved in mixed directions.

The 91-day bill dropped by 2 basis points to 10.67 per cent, the 182-day bill edged up to 12.46 per cent from 12.43 per cent, and the 364-day bill fell by 5 basis points to 12.87 per cent.