Investor interest in Ghana’s Treasury bills dropped significantly last week, as the government raised only GH₵4.77 billion, far below its GH₵7.44 billion target.
This reflects a 35.90% undersubscription rate. Despite the decreased demand, all bids submitted for the 91-day, 182-day, and 364-day Treasury bills were accepted.
Rising yields amid weaker demand
Although demand waned, yields on Treasury bills continued to rise.
The 91-day T-bill yield increased by 63 basis points to 25.64%, the 182-day T-bill edged up by 10 basis points to 26.92%, and the 364-day T-bill rose by 60 basis points to 28.68%.
Meanwhile, trading volumes on the Ghana Fixed Income Market (GFIM) fell by 4.7%, totaling GH₵3.56 billion, with Treasury bills dominating 88.15% of market activity.
Cedi faces pressure against major currencies
The Ghanaian Cedi weakened further against major currencies during the week, dropping by 0.47% against the US Dollar, 1.08% against the British Pound, and 0.45% against the Euro. The midrates closed at GH₵15.83 to the Dollar, GH₵21.22 to the British Pound, and GH₵17.68 to the Euro, showing the ongoing challenges faced by the local currency.
Ghana stock exchange sees slight decline
The Ghana Stock Exchange (GSE) Composite Index recorded a slight 0.04% decline, closing at 4,380.10 points.
This drop was influenced by declines in major stocks such as Access Bank, CAL Bank, and MTN Ghana, despite gains in Standard Chartered Ghana and Enterprise Group.
Trading volumes, however, surged to 266.7 million shares, marking a 4318.03% increase, driven primarily by financial and ICT sectors.
