Investor Interest In Treasury Bills Declines As Government Misses Target By GH¢3.68 Billion
Investor demand for Ghana’s Treasury bills weakened last week, with the government falling short of its issuance target by GH¢3.68 billion, marking a notable drop in appetite after a brief rebound in the previous week.
According to the latest auction results from the Bank of Ghana, the government targeted GH¢6.57 billion but received bids totaling GH¢2.92 billion, of which GH¢2.89 billion was accepted.
This represents a 56% shortfall, underscoring a tightening in market liquidity conditions.
A closer look at the data shows that the 91-day bill remained the most sought-after, attracting GH¢2.09 billion in bids, with GH¢2.08 billion accepted.
The 182-day bill followed with GH¢704 million tendered and GH¢699 million accepted, while the 364-day bill received GH¢136 million in bids, of which GH¢110 million was accepted.
Market analysts attribute the weak performance to tight liquidity among institutional investors, particularly banks, many of whom are believed to have diverted funds into Bank of Ghana Open Market Operation (OMO) bills ahead of the Treasury auction.
This, they suggest, reduced available cash for participation in the government’s short-term debt instruments.
Despite the lower participation, yields rose across all maturities, reflecting market expectations of higher returns amid constrained liquidity.
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The 91-day bill climbed by 16 basis points to 10.69% from 10.53%.
The 182-day bill increased by 13 basis points to 12.43% from 12.30%.
The 364-day bill edged up slightly by 6 basis points to 12.92% from 12.86% the previous week.
The rise in yields signals a shift in investor sentiment, with participants demanding higher returns to compensate for limited cash flow and elevated inflation risks.
Looking ahead, the government has announced plans to raise GH¢6.82 billion in the upcoming auction, as it continues to rely on short-term securities to refinance maturing debt and support its cash flow needs.
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