Investor appetite for T-Bills falls, Treasury misses target by 23 per cent

Investor appetite for Treasury bills continued to soften last week, with the government recording yet another undersubscription at the latest auction.

Total bids submitted across the 91-, 182- and 364-day maturities amounted to GH¢4.9 billion, falling 22.82 percent short of the Treasury’s GH¢6.42 billion target.

Latest Bank of Ghana auction data shows that the 91-day bill dominated activity, attracting GH¢3.93 billion in bids, of which GH¢3.82 billion was accepted. The 182-day bill received GH¢749 million, with GH¢744 million accepted, while the 364-day bill saw GH¢266 million in tenders, out of which GH¢263 million was accepted.

Market analysts say institutional participation remains subdued, largely because the yields on Treasury bills are less competitive compared to alternative short-term instruments.

They note that the Bank of Ghana’s ongoing sale of its own bills—often at more attractive yields—continues to draw banks away from Treasury issuances. This, coupled with a tight liquidity environment, has reinforced the undersubscription trend.

Yields moved marginally across the curve. The 91-day bill edged up by 11 basis points to 11.13 percent from 11.02 percent the previous week. The 182-day bill rose by 2 basis points to 12.68 percent, while the 364-day bill slipped by 2 basis points to 13.06 percent.

In its next auction, the Treasury aims to raise GH¢2.86 billion across the three short-term maturities.