Treasury bill sale undersubscribed as yields begin to rise again

The government of Ghana fell short of its Treasury bill target in the latest auction, as investor demand for short-term instruments weakened, according to results released by the Bank of Ghana.

The government aimed to raise about GH¢5.0 billion but received bids totalling approximately GH¢3.7 billion. Of that amount, GH¢3.26 billion was accepted, resulting in a shortfall of about GH¢1.3 billion.

The 91-day bill attracted the highest level of interest, with bids amounting to GH¢2.23 billion, representing nearly 60 per cent of total submissions. However, about GH¢1.76 billion was taken up.

For the 182-day bill, bids totalled GH¢667.12 million, all of which were accepted. Similarly, the 364-day bill recorded bids of GH¢831.41 million, with the full amount accepted.

Yields increased across all tenors. The rate on the 91-day bill rose by 7 basis points to 4.78 per cent. The 182-day bill climbed to 6.36 per cent from 6.28 per cent, while the 364-day bill increased to 9.58 per cent from 9.41 per cent.

The rise in yields reflects a shift in market conditions, following a period of declining rates in recent auctions.