The undersubscription of treasury bills is expected to continue in the coming weeks.
This is because investors prefer other competitive yield securities, particularly the Bank of Ghana bills over T-bills.
With inflation at 13.7%, yield compression is likely to persist as the Treasury prepares to re-enter the local bond market, Databank Research alluded.
“We believe this timing aligns with their strategy to issue longer-term securities to finance upcoming debt at cost-effective levels”, it added.
Last week, investor demand for T-bills remained weak, with total bids at GH¢2.96 billion.
Although the Treasury accepted all bids, it fell short of the GH¢3.36 billion target but comfortably covered upcoming maturities worth GH¢2.24 billion.
Meanwhile, yield compression persisted, with the 91-day, 182-day and 364-day bills going down by 13 basis points (bps), 23bps and 49bps week-on-week to 14.57%, 15.02% and 15.17% respectively.
In a related development, the government missed its T-bills target for June 2025 by 19.42%.
The Treasury got GH¢21.40 billion, lower than the targeted GH¢26.56 billion and GH¢24.11 billion in maturities.
Source:Fiilafmonline/JoyBuss
