The government turned down more than GH¢2.59 billion in bids at its latest treasury auction despite falling short of its GH¢6.68 billion target, deepening concerns over waning investor appetite for domestic debt.
Total bids submitted for the short-term instruments amounted to GH¢5.35 billion, some GH¢1.33 billion below the auction target, marking the third straight week of undersubscription.
The auction was heavily tilted towards the 91-day treasury bill which attracted GH¢4.36 billion in bids, however only GH¢2.09 billion was accepted.
Investor demand for the 182-day and 364-day tenors also remained subdued with the government accepting GH¢513 million and GH¢154 million out of the GH¢731 million and GH¢270 million bids tendered respectively for the maturities.
Yields on all three tenors eased modestly in line with recent monetary policy trends.
The 91-day bill declined by six basis points to 15.10%, the 182-day slipped to 15.68%, and the 364-day bill fell to 16.78%.
The next auction under Tender 1956 seeks to raise GH¢5.54 billion some GH¢1.14 billion less than the previous week’s target, suggesting a recalibration in issuance strategy in response to evolving market dynamics.
