T-bills undersubscribed again as investors chase higher yields
By Praisebell Rosemond Larbi
The government has missed its Treasury bills (T-bills) target for the third consecutive week, as investors continue to favour alternative high-yielding investment instruments.
According to the latest auction results released by the Bank of Ghana, the bills were undersubscribed by nearly 10 per cent, raising fresh concerns over investor appetite for short-term government securities.
The Treasury had set a higher mobilisation target but managed to receive GHS5.817 billion in bids.
Out of this amount, GHS5.754 billion was accepted, reflecting relatively tight liquidity conditions and cautious investor sentiment in the market.
Once again, the 91-day bill attracted the bulk of investor interest. A total of GHS4.049 billion was tendered for the three-month instrument, representing about 69.6 per cent of the total bids. The government accepted GHS4.029 billion of this amount.
For the 182-day bill, investors tendered GHS1.337 billion, with GHS1.327 billion eventually accepted. In contrast, the longer-term 364-day bill drew much lower patronage, with GHS430.38 million worth of bids submitted and GHS397.82 million taken up by the government.
Meanwhile, yields on the short- and medium-term instruments recorded slight increases, while that of the one-year bill dipped marginally.
The yield on the 91-day bill rose by 28 basis points to 10.41 per cent, reflecting heightened investor demand for higher returns in the face of inflationary pressures.
Similarly, the yield on the 182-day bill edged up to 12.38 per cent from 12.23 per cent the previous week.
However, the 364-day bill moved in the opposite direction, recording a slight decline of eight basis points to settle at 13.00 per cent.
