Investor appetite for government short-term securities remained weak, as results from last week’s Treasury bill auction showed that total bids fell by about 19.5 percent week-on-week to GH¢3.17 billion, despite improving yields.
Demand also fell short of the government’s GH¢4.67 billion target by GH¢1.72 billion, resulting in an undersubscription of 32.19 percent.
Out of the total bids received, approximately GH¢2.95 billion was accepted across the 91-day, 182-day, and 364-day instruments.
The 91-day bill continued to dominate investor interest, attracting GH¢2.02 billion in bids, with GH¢1.99 billion accepted. The 182-day bill recorded GH¢498.93 million in bids, of which GH¢416.93 million was taken up, while the 364-day bill saw GH¢648 million tendered and GH¢533 million accepted.
This comes even as the previous auction recorded stronger demand, with GH¢3.94 billion in bids and GH¢3.23 billion accepted.
Meanwhile, interest rates edged slightly higher across the curve. The 91-day Treasury bill rate held steady at 4.81 percent, while the 182-day yield rose by 9 basis points to 6.71 percent. The 364-day bill also increased by 7 basis points to 9.84 percent.
Looking ahead, the government has raised its borrowing target to GH¢7.57 billion for the next auction, signalling increased financing needs in the short-term debt market.
