 target for the third consecutive week, underscoring investor preference for alternative high-yielding instruments such as fixed deposits.){kind=link}
The government failed to meet its treasury bills (T-bills) target for the third consecutive week, underscoring investor preference for alternative high-yielding instruments such as fixed deposits.
According to auction results released by the Bank of Ghana, the T-bills were undersubscribed by nearly 10 percent. The Treasury received bids worth GH¢5.817 billion but accepted GH¢5.754 billion.
Once again, the 91-day bill attracted the bulk of investor interest, accounting for almost 70 percent of total bids. About GH¢4.049 billion was tendered, with GH¢4.029 billion accepted.
For the 182-day bill, investors submitted GH¢1.337 billion in bids, out of which GH¢1.327 billion was taken up. The 364-day bill saw the least activity, recording GH¢430.38 million in bids, with GH¢397.82 million accepted.
Yields on the short-term instruments saw a mixed performance.
• The 91-day bill rose by 28 basis points to 10.41%.
• The 182-day bill also climbed to 12.38%, up from 12.23% the previous week.
• However, the 364-day bill fell slightly by 8 basis points to 13.00%.
Market watchers say the trend reflects investors’ shifting appetite towards shorter-dated securities and alternative fixed-income products offering higher returns.
The sustained underperformance of T-bill auctions is likely to keep pressure on government financing, as it continues to rely heavily on domestic borrowing to plug budget shortfalls.