T-bills undersubscribed by 37%

By Praisbell Rosemond Larbi

The Government fell short of its treasury bills (T-bills) target in the latest auction, recording a 37 per cent undersubscription just a week after posting an oversubscription.

Market watchers attribute the weak demand to growing investor preference for fixed deposits and Bank of Ghana (BoG) bills, which are currently offering more competitive returns.

According to the BoG’s auction results, the Treasury received GHS3.486 billion in total bids but accepted slightly less, GHS3.463 billion, leaving a significant gap relative to its target.

The 91-day bill once again attracted the lion’s share of investor interest, accounting for over 76 per cent of total bids. Bids for this tenor reached GHS2.66 billion, of which GHS2.65 billion was accepted.

The 182-day bill drew GHS705.7 million in bids, with GHS695.3 million accepted. For the 364-day instrument, investors tendered GHS119.5 million, and the government took up about GHS116.5 million.

The undersubscription came alongside a modest uptick in yields across all maturities, reflecting investor demands for higher returns amid tightening liquidity conditions.

91-day bill: Yield climbed 5 basis points to 10.50 per cent.

182-day bill: Rate inched up to 12.39 per cent from 12.36 per cent the previous week.

364-day bill: Yield rose by 1 basis point to 12.89 per cent.