The Government of Ghana fell short of its treasury bill target in its latest domestic auction, raising GH¢3.89 billion against a projected GH¢4.47 billion, even as investor interest remained strong in short-term instruments.
Results from the April 24 auction, settled on April 27, showed total bids of about GH¢4.43 billion across the 91-day, 182-day, and 364-day treasury bills. Out of this, GH¢3.89 billion was accepted, indicating selective uptake by authorities, particularly at the longer end of the market.
The 91-day bill once again dominated investor demand, attracting GH¢2.75 billion in bids, with GH¢2.71 billion accepted. The 182-day bill recorded GH¢717 million in bids, out of which GH¢664 million was taken up. However, the 364-day bill saw a more cautious approach, with GH¢960 million tendered but only GH¢522 million accepted.
This pattern reflects a continued preference among investors for short-term securities, where interest rate movements are more predictable and liquidity risks are lower. The relatively weaker demand for longer-dated instruments highlights lingering concerns about pricing and duration risks in the current economic environment.
For the period under review, weighted average yields settled at 4.86% for the 91-day bill, 6.72% for the 182-day bill, and 9.19% for the 364-day bill. When adjusted on an interest rate basis, these stood at 4.92%, 6.96%, and 10.12% respectively.
While the strong appetite for short-term bills supports the government’s immediate financing needs, analysts warn that the growing reliance on such instruments increases rollover risks in the debt profile.
Looking ahead, the government aims to raise GH¢5 billion in the next auction under Tender 2005, covering the same maturities. The upcoming issuance will be closely watched as a gauge of investor confidence and the market’s capacity to absorb continued domestic borrowing.
