Investor appetite for Ghana’s short-term government securities remained subdued in the final Treasury bill auction of April, with total bids falling 10.4 percent below the target, signalling continued weakness in the primary market.
According to auction results, investors submitted GH¢4.49 billion in bids across the 91-day, 182-day and 364-day instruments, out of which the Bank of Ghana accepted GH¢4.44 billion.
This fell short of the government’s GH¢5.01 billion target by about GH¢571.21 million, highlighting softer participation relative to financing expectations.
Demand remained strongest at the short end of the yield curve. The 91-day bill recorded GH¢1.89 billion in bids, all of which were accepted, while the 182-day bill saw GH¢764.25 million in tenders, also fully accepted. This reflects a continued investor preference for shorter and medium-term instruments.
In contrast, interest weakened for longer maturities. The 364-day bill attracted GH¢1.83 billion in bids, with GH¢1.78 billion accepted, suggesting some investor caution and selective participation.
Yields showed a slight upward trend across the board. The 91-day rate held at 4.92%, the 182-day yield edged up marginally to 6.96%, and the 364-day yield rose more noticeably to 10.19 percent, indicating demand for higher returns, particularly on longer-term securities.
The persistent undersubscription points to ongoing liquidity constraints in the market, alongside investor preference for higher yields and shorter-dated assets.
Looking ahead, the government appears to be adjusting its borrowing plans, lowering its next auction target to GH¢4.34 billion in response to current market conditions.
Source: businesspostonline
