T-Bills undersubscribed by GHS 514m
Treasury bills auctioned by Government last week Friday, August 18, 2023 was undersubscribed by GHS 514m.
The Government sought to raise GHS 3,966m in fresh debt.
During the auction, T-bills worth GH¢1,632 million, GH¢ 1,694 million, and GH¢126 million were accepted for the 91-Day, 182-Day, and 364-Day bills, respectively.
The subdued demand for these short-term government securities reflects investor caution and hints at prevailing concerns over the economic outlook.
Yield movement across the various maturities showed mixed trends, with different tenors attracting varied responses from the market.
The 91-Day T-Bills settled at a yield of 26.7%, reflecting the risk appetite for short-term investments. In comparison, the 182-Day T-Bills commanded a slightly higher yield, settling at 27.8%.
The longest maturity, the 364-Day T-Bills, registered the highest yield at 30.1%, signaling investors’ preference for higher returns amid uncertainties.
Looking forward, the Government aims to raise GH¢3,507 million in the next auction (Tender #1863) for the combined issuance of the 91-Day, 182-Day, and 364-Day T-Bills.
Achieving this ambitious target will require close monitoring of market sentiment and economic indicators, considering the under-subscription realised by Government last Friday.
The setback in demand for the Treasury bills underscores the importance of prudently managing the government’s borrowing program amid the evolving economic landscape.
Both domestic and international investors will closely evaluate macroeconomic factors, inflationary pressures, and fiscal policies while making investment decisions.
As the Government navigates these challenges, investors are expected to remain vigilant and assess the risk-return dynamics of government T-bills. Market participants will keep a watchful eye on developments, seeking signals of stability and recovery in the economy.
