Investor interest in Ghana’s Treasury bills (T-bills) took a hit last week, leaving the government with a shortfall of GH¢1.13 billion in its latest auction. According to data released by the Bank of Ghana, the government received GH¢2.57 billion in bids, falling well below its target of GH¢3.71 billion. The 30.5% shortfall highlights growing investor caution amid shifting market preferences.
The 91-day T-bill emerged as the most sought-after instrument, with nearly 99% of the GH¢2.03 billion tendered being accepted. The 182-day and 364-day bills also saw strong uptake, albeit slightly below expectations, with GH¢389 million accepted from GH¢394 million submitted and GH¢165 million out of GH¢170 million, respectively. Analysts note that while participation remains, the appetite for these government securities is slowing.
Market observers attribute the weaker demand to investors moving toward alternative financial instruments that promise higher returns. Treasury bills, traditionally seen as a safe haven, are now competing with more lucrative options, prompting some investors to rethink their portfolios. This trend reflects a broader recalibration in Ghana’s investment landscape.
Yields across the short-term T-bill curve also eased slightly. The 91-day bill yield dropped by three basis points to 10.47% from 10.50%, the 182-day bill fell by four basis points to 12.35% from 12.39%, and the 364-day bill slipped two basis points to 12.87% from 12.89%. While modest, these declines may influence investor decisions in upcoming auctions.
Looking ahead, the government is preparing for a larger T-bill auction this week, targeting GH¢5.26 billion. Market participants will be watching closely to see if investor sentiment rebounds or if the trend of cautious engagement continues, signaling a potential shift in Ghana’s debt market dynamics.
Source: citi newsroom