Treasury bills undersubscribed as yields tick up

Investor demand for Ghana’s short-term government securities weakened sharply in the second week of July, with Treasury bill sales falling short of target by nearly 40%.

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According to Bank of Ghana data, the government aimed to raise GHS7.52 billion but secured only GHS4.53 billion in bid, resulting in a 39.68% undersubscription. The shortfall totaled GHS2.99 billion.

Breakdown of accepted bids:

• 91-day bill: GHS3.63 billion accepted from GHS3.71 billion
• 182-day bill: GHS804 million accepted from GHS814 million
• 364-day bill: GHS100 million accepted out of GHS1.6 billion

Meanwhile, yields edged up modestly, reversing months of steady decline.

• The 91-day yield rose by 9 basis points to 14.65%
• The 182-day increased by 1 basis point to 15.02%
• The 364-day climbed 25 basis points to 15.41%

Analysts suggest the rising yields reflect investor concerns over pricing, especially with large maturities due in the near term. The government now targets GHS5.43 billion in its upcoming auction.