The Government of Ghana fell short of its treasury bill target in its latest auction. It raised about GH¢4.09 billion, below the target of GH¢4.89 billion. Investor demand remained stronger for short-term instruments, while interest in longer-dated securities was weaker.
Data from Tender 2003, held on April 17, showed total bids of about GH¢4.49 billion. Out of this, the government accepted GH¢4.09 billion. This indicates that liquidity is still available in the market. However, investors remain cautious about locking funds into longer maturities.
The 91-day bill led the auction. It attracted GH¢2.56 billion in bids, with GH¢2.54 billion accepted. The 182-day bill received GH¢771.16 million, of which GH¢758.04 million was accepted. The 364-day bill saw GH¢1.16 billion in bids, but only GH¢790.95 million was taken. This shows more selective acceptance at the longer end.
This pattern reflects a broader trend in Ghana’s debt market. Investors prefer short-term securities because they offer better flexibility and lower risk. For the government, this provides short-term funding but increases refinancing pressure.
Interest rates varied across maturities. The 91-day bill recorded a rate of 4.89%, while the 182-day bill stood at 6.68%. The 364-day bill came in at 9.20%. Higher rates at the long end continue to affect demand.
The government also rejected some higher bids, especially for longer-term bills. This suggests a strategy to control borrowing costs. As a result, authorities appear willing to accept less funding rather than borrow at higher rates
