Investor appetite for T-bills have weakened
Investor appetite for Ghana’s treasury bills continues to weaken, as last week’s auction fell short of expectations by a wide margin.
The government targeted GH¢6.72 billion but secured only GH¢3.39 billion, reflecting a 50 percent undersubscription.
Although total bids amounted to GH¢3.5 billion across the 91-day, 182-day, and 364-day maturities, the final uptake remained subdued.
T-Bills: Government sees first undersubscription in three weeks despite low interest rates
The 91-day bill recorded GH¢2.01 billion accepted out of GH¢2.05 billion tendered.
For the 182-day bill, GH¢1.12 billion was accepted from GH¢1.14 billion submitted, while the 364-day bill saw GH¢194 million taken out of GH¢321 million in bids.
Yields on all three maturities edged down slightly.
The 91-day yield slipped to 10.32 percent from 10.41 percent, the 182-day dipped to 12.37 percent from 12.38 percent, and the 364-day eased to 12.99 percent from 13.00 percent.
While some analysts point to competition from other attractive instruments as a factor behind the weak demand, the consistent undersubscriptions suggest deeper concerns about investor confidence.
The government is now targeting GH¢3.78 billion in its next auction, hoping for a stronger investor response.
SA/MA