Treasury bills remained undersubscribed last week, with the government missing its target by GH¢577 million, reflecting continued tight liquidity conditions in the market.
Latest data from the Bank of Ghana show that investors submitted GH¢4.43 billion in bids across the 91-day, 182-day, and 364-day instruments. Of this, the Treasury accepted GH¢3.89 billion.
This extends the streak of under-subscription in government securities to seven consecutive auctions.
Demand remained heavily skewed toward short-term instruments. The 91-day bill recorded the strongest interest, attracting GH¢2.76 billion in bids, with GH¢2.71 billion accepted. The yield inched up slightly, with the weighted average interest rate settling at 4.9244 percent.
The 182-day bill also posted firm demand, with GH¢717.64 million tendered and GH¢664.37 million accepted. Its weighted average yield rose marginally to 6.9630 percent.
In contrast, appetite for the 364-day bill weakened considerably. Of the GH¢960.08 million in bids submitted, only GH¢522.48 million was accepted, just over half.
Interest rate movements were mixed across the yield curve. The 91-day yield eased by 2 basis points to 4.92 percent, while the 182-day yield edged up to 6.96 percent from 6.90 percent the previous week. The 364-day yield remained unchanged at 10.12 percent.
The divergence in yields underscores cautious investor sentiment, with preference tilted toward short-term securities. The relatively higher rates on longer-dated instruments suggest lingering concerns around inflation and liquidity conditions.
Looking ahead, the government has set a higher target of GH¢5.01 billion for the next auction, signaling increased near-term financing requirements.
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