Investor appetite declines in latest Ghana T-Bills auction

Investor demand for short-term Government of Ghana securities has recorded its first decline in several months, according to the latest treasury bills auction results released by the Bank of Ghana.

The auction was undersubscribed by 25.4%, with total bids amounting to GH¢3.73 billion—falling short of the government’s GH¢5.0 billion target. Out of the bids received, GH¢3.26 billion was accepted.

A breakdown of the bids shows that the 91-day bill attracted GH¢2.23 billion in subscriptions, of which GH¢1.77 billion was accepted. The 182-day bill recorded bids of GH¢667.12 million, all of which were taken up. Similarly, the 364-day bill saw full acceptance of GH¢831.41 million in bids.

Despite the dip in overall demand, the 91-day bill remained the most popular, accounting for 59.8% of total bids, although not all submissions were accepted. In contrast, both the 182-day and 364-day bills achieved full uptake.

Meanwhile, interest rates edged higher across all tenors. The yield on the 91-day bill rose by 7 basis points to 4.78%. The 182-day bill increased slightly to 6.36% from 6.28%, while the 364-day bill climbed by 18 basis points to 9.58%.

The outcome suggests a modest weakening in investor appetite for short-term government securities, even as yields continue to rise.