Treasury bills faced a marginal undersubscription last week, with the government accepting bids totaling GHS 5.40 billion against a target of GHS 5.46 billion, reflecting a shortfall of GHS 60 million.
This contrasts with the previous week’s oversubscription of GHS 1.35 billion, highlighting a shift in market dynamics. Maturities for the week stood at GHS 5.12 billion, per data from the Bank of Ghana (BoG).
Breaking down the performance by tenor, the 91-day Treasury bill remained the most sought after, attracting all GHS 4.02 billion in bids.
The 182-day bill saw bids of GHS 867 million, while the 364-day bill garnered GHS 508 million. Across all tenors, yields experienced marginal increases.
The 91-day and 182-day bill yields each rose by eight basis points to 27.85% and 28.57%, respectively. Meanwhile, the 364-day bill yield edged up by one basis point to 29.94%, signaling a continued rise in borrowing costs.
Market analysts attributed the slight undersubscription to heightened participation in the Bank of Ghana’s separate bill auction, which saw a robust uptake of approximately GHS 6.9 billion.
They anticipate yields will remain elevated as the central bank sustains its contractionary open market operations to manage liquidity.
Looking ahead, the government aims to raise GHS 4.26 billion in its upcoming auction, which will test investor appetite in a market characterized by rising yields and increasing competition for funds.