Undersubscription Marks Market Slowdown
Ghana’s Treasury recorded an undersubscription in its latest treasury bill auction, highlighting a slowdown in investor appetite for short-term government securities. Total bids reached GH¢3.0 billion, with GH¢2.73 billion accepted—35.6 percent below the GH¢4.24 billion target.
The shortfall contrasts with the strong performance of the August 8 auction, when the Treasury secured GH¢6.68 billion out of GH¢6.89 billion tendered.
Investor Preference Shifts
Market analysts attribute the weaker demand to a growing shift of funds into alternative investment products, including fixed deposits and repos, which currently offer more attractive returns.
Read Also: Ghana eyes $2bn savings with new RedGold palm oil policy
The auction breakdown shows:
- 91-day bill: GH¢2.02 billion accepted from GH¢2.05 billion bids
- 182-day bill: GH¢537 million accepted from GH¢678 million bids
- 364-day bill: GH¢167 million accepted from GH¢272 million bids
Yields Continue to Decline
T-bill yields maintained a downward trend, slipping across all maturities. The 91-day yield declined by 7 basis points to 10.13 percent, while the 182-day and 364-day yields fell by 2 basis points each, to 12.23 percent and 13.08 percent, respectively.
Outlook: Government Seeks GH¢6.42 Billion
Looking forward, the government aims to raise GH¢6.42 billion in its upcoming auction. Analysts note that this underscores continued reliance on short-term domestic borrowing to refinance maturing debt and sustain liquidity management.
