The Treasury bill market is expected to remain subdued in the near term, with investors maintaining a cautious and highly selective stance amid evolving market conditions.
According to Databank Research, demand for short-term government securities will likely stay measured as market participants continue to reassess their positions following recent yield adjustments and broader macroeconomic signals.
The approach reflects lingering uncertainty around pricing direction and the pace of fiscal consolidation, with investors holding back until clearer signals emerge.
While month-end portfolio rebalancing could provide some temporary support to demand, this is unlikely to drive a significant turnaround in market activity.
A more sustained recovery, analysts note, will depend on a meaningful improvement in investor confidence, alongside more competitive yield levels to compensate for prevailing risks.
In the interim, yields are expected to continue adjusting gradually upward, particularly along the mid-section of the curve, as the Government of Ghana balances its financing needs with efforts to maintain rate stability.
At the last auction, the Government received total bids of GH¢3.94 billion but still below its target of GH¢4.93 billion. This resulted in an undersubscription of about 20%, underscoring weak appetite even as yields ticked higher.
Across the curve, yields continued their gradual upward adjustment. The 91-day bill rose marginally by 3 basis points to 4.81%, while the 182-day and 364-day instruments saw sharper increases of 26 basis points and 19 basis points to 6.62% and 9.77% respectively.
