The Government of Ghana has missed its latest treasury bill fundraising target, raising GH¢4.09 billion against a planned GH¢4.89 billion in its domestic debt auction, as investor appetite continues to tilt strongly toward short-term securities.
In Tender 2003, held on April 17 for issuance on April 20, total bids submitted amounted to about GH¢4.49 billion across the 91-day, 182-day, and 364-day bills. However, the government accepted only GH¢4.09 billion, reflecting a more selective approach to borrowing amid pricing concerns, particularly at the longer end of the curve.
Short-term instruments once again dominated activity. The 91-day bill attracted the highest interest, with bids totaling GH¢2.56 billion, of which GH¢2.54 billion was accepted. The 182-day bill followed with GH¢771.16 million in bids and GH¢758.04 million accepted. The 364-day bill, however, saw more cautious uptake, as GH¢1.16 billion was tendered but only GH¢790.95 million was taken up.
This pattern underscores a consistent trend in the domestic debt market: investors remain more comfortable with short-dated government securities, where returns are quicker and exposure to interest rate risk is lower. While this continues to provide the government with reliable short-term financing, it also reinforces the challenge of refinancing debt frequently.
Interest rates for the week of April 20 to 24 showed mixed movement across maturities. The 91-day bill averaged 4.89 percent, the 182-day bill 6.68 percent, and the 364-day bill 9.20 percent. On an effective yield basis, the rates translated to 4.95 percent, 6.91 percent, and 10.13 percent respectively.
The auction also reflected strict pricing discipline from the government, which rejected higher-yield bids particularly on longer maturities. For the 364-day bill, for example, bids above 9.39 percent were not fully accepted, despite offers reaching as high as 10.71 percent. Similar selectivity was observed across the other tenors.
This approach suggests authorities are prioritising cost control over volume, even if it means falling short of fundraising targets. In effect, the government appears willing to limit issuance rather than lock in higher borrowing costs.
Compared to the previous week’s Tender 2002, where GH¢5.11 billion was raised from GH¢5.31 billion in bids, the latest auction reflects a softer outcome in both participation and absorption.
Looking ahead, the government is targeting GH¢4.48 billion in its next auction under Tender 2004. That sale will be closely watched for signs of whether investor confidence and liquidity conditions can sustain demand, especially as fiscal financing continues to rely heavily on the short-term domestic market.
Overall, while demand for government securities remains solid, the latest results highlight a market that is becoming increasingly selective favouring safety and liquidity over longer-term commitments.
