Investor appetite for government treasury bills showed signs of slowing in the latest auction, even as yields on short-term securities continued their upward trend.
Results released by the Bank of Ghana indicate that the government fell short of its borrowing target after attracting GH¢4.20 billion in bids against an intended target of GH¢5.27 billion. The outcome represents an undersubscription of approximately 20 percent, a reversal from the previous week’s oversubscribed auction.
Despite the shortfall, the government accepted all bids submitted by investors.
The 91-day treasury bill remained the preferred investment option, accounting for the largest share of subscriptions. It attracted GH¢2.25 billion in bids, representing more than half of the total amount tendered.
The 364-day bill followed with GH¢1.146 billion in bids, while investors submitted GH¢802.87 million for the 182-day instrument.
Meanwhile, returns on treasury bills continued to edge higher, offering investors improved yields across all maturities. The yield on the 91-day bill rose by 26 basis points to 5.30 percent.
Similarly, the 182-day bill increased marginally to 7.13 percent from 7.08 percent in the previous auction. The 364-day bill recorded the sharpest increase, climbing 39 basis points to 11.36 percent.
The latest auction results suggest investors may be becoming more selective despite the attractive yields, as the government navigates domestic borrowing requirements amid changing market conditions.
