Gov’t Treasury Bills Under Subscribed In Third Quarter Of 2021

The Government’s Treasury Bills were undersubscribed during the third quarter of 2021 with the overall subscription rate peaking 89.5%, down from GoG’s target of GHS16.83 billion.

According to analysts, this was so because investors shifted their interest to the bond market in search of higher yields. 

The interest rates for the 364-day, 182-day and 91-day T-bills declined by 19 bps, 17 bps, and 13 bps from Q2’2021, to 16.14%, 13.21% and 12.49% respectively, in Q3’2021 observed, Tesah Capital.

However, activity on the secondary bond market increased, with the turnover increasing by 92.4%y/y in Q3’2021 to GHS 49.37 billion, from GHS 25.66 billion in Q3’2020.

The GoG securities accounted for 85.5% of total volumes traded in Q3’2021 down from 90.8% recorded in Q2’2021 due to an increase in corporate bond issuances during the period.

The GoG securities constituted 80.83% of the market size as of September 2021.

Meanwhile, the Ghana Stock Exchange ( GSE-CI) continued on an upward trajectory in GSE-CI Q3’2021 as it closed the quarter at 2,855.29 up from 2,643.67points in Q2’2021, with a year-to-date return of 47.06%. 

The equities market performance during the quarter was driven mainly by gains recorded by GSE-FSI. The GSE-FI gained 9.82% following the release of the H1’2021 financial results of listed banks as compared to a gain of 1.38% in the previous quarter. 

Trading volumes declined by 41.8% as share volume of 73.50 million valued at GHS 103.55 million changed hands compared with 104.22 million shares valued at GHS 135.24 million which settled in Q2’2021. 

MTNGH dominated the market in volume traded by ~87.48% in Q3’2021.