The Government has recorded its fifth consecutive undersubscription in the Treasury bills market, signaling sustained investor caution even as interest rates continue to edge upward.
According to the latest auction results released by the Bank of Ghana, the government fell short of its target by 8.2 percent, marking a slight improvement from the previous week but extending the streak of weak demand.
The government aimed to raise GH¢4.8 billion but received bids totaling just over GH¢4.48 billion. Of that amount, approximately GH¢4.0 billion was accepted.
The 91-day bill remained the most attractive instrument, accounting for GH¢2.55 billion in bids—about 56.9 percent of total submissions. However, only GH¢790 million was accepted.
The 182-day bill saw bids worth GH¢771.16 million, with nearly all—about GH¢758 million—accepted, indicating relatively stronger uptake in that segment.
For the 364-day bill, investor interest remained subdued, with bids totaling around GH¢1.1 billion, of which only GH¢162.59 million was taken up.
Despite the weaker demand, yields continued to rise across the short-term securities market, reflecting the government’s efforts to attract investors.
The yield on the 91-day bill inched up by 3 basis points to 4.94 percent, while the 182-day bill rose to 6.90 percent from 6.77 percent the previous week. The 364-day bill recorded the sharpest increase, climbing 15 basis points to 10.12 percent.
Market watchers say the persistent undersubscription trend points to tightening liquidity conditions and cautious investor sentiment, even as higher yields attempt to lure participation in the government’s domestic borrowing programme.
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