Databank Research warns that the trend of undersubscriptions in Treasury bills is likely to continue in the coming weeks, as investors pursue more competitive returns amid falling yields and inflationary pressures.
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The first auction in July fell short by 11.56%, raising GH¢2.96 billion against a target of GH¢3.36 billion. Despite the shortfall, all bids were accepted to cover maturing obligations of GH¢2.24 billion.
Yields continued to drop across all tenors, with the 91-day bill falling to 14.57%, the 182-day to 15.02%, and the 364-day to 15.17%.
With inflation at 13.7%, the research firm notes that real returns remain unattractive, prompting investors to favour alternative assets over short-term government debt.
“We expect continued undersubscriptions as investors shift to better-yielding options,” Databank stated. “The Treasury’s plan to re-enter the local bond market aligns with its broader strategy to issue longer-term instruments at more sustainable costs.”
Analysts say this move reflects a tactical shift in debt management as government seeks to balance affordability with investor demand.
Read also: Gov’t misses Treasury bill target for 6th week in a row » Awake News
