Treasury Bills faces second consecutive under subscription last week
Ghana’s auction of short-term debt instruments recorded a second consecutive under subscription last week, with bids falling short by 27.16%, equivalent to GH¢ 1.53 billion, underscoring cautious investor sentiment in the fixed-income market.
At last Friday’s auction, the government received total bids worth GH¢ 4.70 billion against a target of GH¢ 5.64 billion.
With this, GH¢ 4.11 billion was accepted, reflecting a measured approach to debt issuance amid changing market dynamics.
The 91-day bill saw the highest demand, attracting GH¢ 3.50 billion in bids, of which GH¢ 3.02 billion was accepted.
The 182-day and 364-day bills recorded bids of GH¢ 582 million and GH¢ 619 million, with the government accepting GH¢ 582 million and GH¢ 500 million, respectively.
Yields on the 91-day bill declined by 2 basis points to 15.71%, while the 364-day instrument held steady at 18.84%.
The yield on the 182-day bill remained unchanged from the previous auction at 16.73%.
The results come as the government prepares to raise an additional GH¢ 4.39 billion at its next short-term debt sale scheduled for April 4, 2025.
The under-subscription signals investor caution in the fixed-income market.
SP/EB