Investor demand for Government of Ghana short-term securities remained weak in the final auction of April, as total bids fell short of the issuance target by 10.4 percent, underscoring continued softness in the primary market.
Results from the latest auction show that a total of GH¢4.49 billion was tendered across the 91-day, 182-day, and 364-day Treasury bills, with GH¢4.44 billion accepted by the Bank of Ghana.
Against a target of GH¢5.01 billion, the auction recorded a shortfall of GH¢571.21 million, highlighting weak participation relative to the government’s financing expectations.
At the short end of the curve, the 91-day bill attracted GH¢1.89 billion in bids, all of which was accepted, pointing to sustained investor preference for shorter-dated instruments. Similarly, the 182-day bill saw GH¢764.25 million in tenders, with full acceptance, reflecting stable demand in the medium-term segment.
Demand, however, softened at the longer end. The 364-day bill recorded GH¢1.83 billion in bids, of which GH¢1.78 billion was accepted, indicating some degree of bid rejection and a more cautious stance among investors toward longer maturities.
Yields edged higher across the curve. The rate on the 91-day bill held steady at 4.92 percent, while the 182-day bill inched up marginally by 1 basis point to 6.96 percent. The 364-day yield rose more noticeably by 7 basis points to 10.19 percent, up from 10.12 percent in the previous auction.
The persistent undersubscription trend points to ongoing liquidity constraints, a preference among investors for higher yields, and lingering caution toward longer-dated securities.
Looking ahead, the government appears to be adjusting its borrowing strategy, scaling back its target to GH¢4.34 billion for the next auction.
