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Thursday, April 3, 2025

T-Bills face second under subscription amid investor caution

Treasury Bills faces second consecutive under subscription last week 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

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