Investor appetite for Treasury bills is expected to gradually improve this week, although market participants are likely to remain cautious despite rising yields.
According to Databank Research’s latest review and outlook of the primary market, demand at last week’s auction softened after the previous surge, with total bids falling 15.47% week-on-week to GHS4.49 billion. This came in below the government’s target of GHS4.89 billion, resulting in an undersubscription of 8.21%.
The Treasury accepted GHS4.09 billion, translating into a cover of 0.84 times the target and a bid-to-cover ratio of 1.10 times. This, the report notes, reflects still-cautious investor sentiment, even as conditions show signs of improvement.
Yields, however, continued to edge higher across the curve, suggesting a gradual adjustment in investor expectations. The 91-day bill rose by 4 basis points to 4.95%, while the 182-day and 364-day bills climbed to 6.91% and 10.13% respectively.
Looking ahead, Databank Research anticipates a modest recovery in demand, driven partly by the upward movement in yields, which could attract more selective investor participation.
Meanwhile, the Treasury is set to return to the market on Friday, April 24, 2026, targeting GHS4.48 billion through the issuance of 91-day, 182-day, and 364-day bills. The funds will be used to roll over maturing bills estimated at GHS4.33 billion.
