T-Bills: Investor Demand Continues to Soften Despite Rising Yields as Gov’t Misses GHS 7.5bn Target
Government’s short-term debt instruments are beginning to show signs of softening investor appetite, after the latest Treasury bill auction recorded an undersubscription of GH¢2.26 billion.
Auction results show that Government missed its GH¢7.57 billion target, attracting total bids of GH¢5.30 billion, out of which GH¢5.11 billion was accepted.
A breakdown of the issuance indicates that the 91-day bill remained the most preferred instrument, garnering GH¢4.43 billion in bids, with GH¢4.42 billion accepted. The 182-day bill recorded GH¢521 million in bids, all of which was accepted, while the 364-day bill attracted GH¢348 million, with only GH¢162 million taken up.
Yields continued their upward trajectory across the curve, pointing to tightening liquidity conditions and a possible shift in investor sentiment. The 91-day bill rate inched up to 4.91%, while the 182-day yield rose to 6.77% from 6.71%. The 364-day instrument also climbed to 9.97%.
Consequently, the average Treasury bill rate settled at 7.21%.
The undersubscription breaks a streak of sustained oversubscription recorded in recent auctions, signalling a potential recalibration in investor demand amid evolving market dynamics.
Government is, however, expected to return to the market on April 17, 2026, with a lower issuance target of GH¢4.89 billion across the 91-day, 182-day and 364-day tenors.
