Investor interest in Treasury Bills remains weak amid undersubscription

Investor appetite for Treasury bills (T-bills) continued to soften last week, with the government recording another undersubscription at its latest auction.

According to Bank of Ghana (BoG) data, total bids across the 91-, 182-, and 364-day maturities amounted to GH¢4.9 billion, falling 22.82% short of the Treasury’s GH¢6.42 billion target.

The 91-day T-bill dominated activity, attracting GH¢3.93 billion in bids, of which GH¢3.82 billion was accepted. The 182-day bill received GH¢749 million in bids, with GH¢744 million accepted, while the 364-day bill saw GH¢266 million in tenders, out of which GH¢263 million was accepted.

Market analysts say institutional participation remains subdued, largely due to Treasury bill yields being less competitive than alternative short-term instruments. They point out that the BoG’s ongoing sale of its own bills—often offering higher yields—continues to draw banks away from Treasury issuances. A tight liquidity environment has further reinforced the undersubscription trend.

Yields moved marginally across the curve last week. The 91-day bill increased by 11 basis points to 11.13% from 11.02% the previous week. The 182-day bill rose by 2 basis points to 12.68%, while the 364-day bill slipped by 2 basis points to 13.06%.

In its next auction, the Treasury aims to raise GH¢2.86 billion across the three short-term maturities.