The Government of Ghana fell short of its borrowing target in the final Treasury bill auction for April after investor demand weakened, raising fresh concerns about sentiment in the short-term debt market.
Auction results released by the Bank of Ghana showed that total bids reached GH¢4.49 billion across the 91-day, 182-day and 364-day Treasury bills, missing the government’s GH¢5.01 billion target by GH¢571.21 million.
Out of the total bids submitted, the government accepted GH¢4.44 billion.
The shortfall reflects continued softness in the primary market, with investors showing caution despite the government’s ongoing financing needs.
Demand remained strongest for shorter-term instruments, as the 91-day bill attracted GH¢1.89 billion in bids, all of which were accepted.
The 182-day bill also recorded stable demand, receiving GH¢764.25 million in tenders, with full acceptance.
However, investor appetite weakened for longer-term securities, with the 364-day bill attracting GH¢1.83 billion in bids. Of that amount, only GH¢1.78 billion was accepted, suggesting growing caution toward longer maturities.
Interest rates also moved upward, particularly on longer-term bills.
The yield on the 91-day bill remained unchanged at 4.92 percent, while the 182-day bill edged up slightly to 6.96 percent.
The most significant increase was recorded on the 364-day bill, where the yield rose by seven basis points to 10.19 percent from 10.12 percent in the previous auction.
Analysts say the undersubscription trend points to tighter liquidity conditions, investor demands for better returns and continued caution in the domestic debt market.
In response, the government has lowered its next borrowing target to GH¢4.34 billion as it adjusts to current market conditions.
