Demand for treasury bills remained weak in the second week of July, with the Treasury recording a 39.68% undersubscription.
Latest data from the Bank of Ghana show that although the government targeted GHC7.52 billion, it received total bids worth GHC4.53 billion, missing its target by GHC2.99 billion.
The data indicates that GHC3.63 billion out of GHC3.71 billion in bids for the 91-day bill were accepted. For the 182-day bill, GHC804 million was accepted from GHC814 million in bids. The 364-day bill recorded GHC100 million in accepted bids from GHC1.6 billion.
Yields on short-term securities rose modestly, breaking a trend of consistent declines since February.
The 91-day yield climbed by 9 basis points to 14.65%, while the 182-day edged up 1 basis point to 15.02% from 15.01%. The 364-day yield increased by 25 basis points to 15.41%.
Market analysts believe the sudden uptick in yields may reflect market pushback on pricing amid high upcoming maturities.
Looking ahead, the government aims to raise GHC5.43 billion at the next auction.
