Government’s latest treasury bills auction has recorded a seventh straight undersubscription, reflecting persistent liquidity constraints in the banking system and growing investor caution toward sovereign debt.
Results from tender 2004, held on April 24, 2026, showed total bids of GH¢4.48855 billion across the 91-day, 182-day, and 364-day instruments — falling short of the GH¢4.475 billion target. The Treasury accepted GH¢4.09030 billion, leaving a shortfall of approximately GH¢384.7 million relative to bids submitted and a GH¢577 million gap against the full target.
The continuing trend poses potential risks to the cedi and complicates government’s cash management operations.
Strong Demand for Short-Term Paper
Investor preference remained heavily skewed toward short-term instruments amid economic uncertainty.
The 91-day bill attracted the strongest interest, with GH¢2.75623 billion in bids and GH¢2.71025 billion accepted. Bid rates ranged from 4.5000% to 5.3000%, with full allotment between 4.5000% and 4.9997%. The weighted average discount rate settled at 4.8645%, corresponding to an interest rate of 4.9244%.
The 182-day bill also saw firm demand, with GH¢717.64 million tendered and GH¢664.37 million accepted. Bid rates ranged from 6.5000% to 7.5000%, with the weighted average discount rate at 6.7183% — translating to an interest rate of 6.9630%.
Weak Appetite for 364-Day Instrument
In stark contrast, demand for the 364-day bill weakened considerably. Of the GH¢960.08 million in bids submitted, only GH¢522.48 million was accepted — just over half. Bid rates stretched from 8.5000% to 9.7473%, with the weighted average discount rate standing at 9.1932%, equating to an interest rate of 10.1239%.
Mixed Yield Movements
Interest rate movements were mixed across the yield curve. The 91-day yield eased marginally while the 182-day yield edged upward. The 364-day yield remained elevated, reflecting lingering inflation concerns and uncertainty over the government’s medium-term fiscal trajectory.
Analysts say the divergence underscores cautious sentiment, with investors demanding a premium to lock in funds for extended periods.
Higher Target Ahead
The government has set a significantly higher target of GH¢5.009 billion for tender 2005, signalling increased near-term financing requirements. The success of that auction will depend heavily on banking system liquidity and investor confidence in the government’s fiscal consolidation efforts.
The Bank of Ghana noted that the wholesale auction is open exclusively to primary dealers, who act as market makers in government securities. The investing public may trade on the secondary market — the Ghana Fixed Income Market — through depository participants, including primary dealers.
