By: Franklin ASARE-DONKOH
The Government of Ghana has failed to meet its Treasury bill (T-bill) auction target for the week ending April 3, 2026, marking a significant downturn in investor demand for short-term sovereign securities.
According to data from the Bank of Ghana, the government recorded roughly a 32% undersubscription.
Auction Performance Highlights
Target vs. Performance: The Treasury aimed to raise GH₵4.63 billion (rounded to GH₵4.67 billion in some market reports) but received total bids of only GH₵3.16 billion.
Accepted Bids: Of the total bids received, the government accepted GH₵2.84 billion, resulting in a shortfall of over GH₵1.7 billion against the initial target.
91-Day Bill: Remains the most preferred, with GH₵2.02 billion tendered and GH₵1.99 billion accepted.
182-Day Bill: Attracted GH₵498.9 million in bids, with GH₵416.9 million accepted.
364-Day Bill: Recorded GH₵648 million in bids, with GH₵416.93 million accepted.
Factors Driving the Slump
Market analysts attribute this third consecutive week of under-subscription to several key factors: alternative investments, tight liquidity, and yield sentiment.
Alternative Investments: Investors are increasingly shifting funds toward alternative instruments like fixed deposits and repurchase agreements (repos).
Tight Liquidity: Deepening pressure on domestic financing and tight market liquidity have weighed on participation.
Yield Sentiment: While yields on 182-day and 364-day bills inched upward (reaching 6.71% and 9.84%, respectively), the marginal increases were not enough to sustain wider investor interest.
Outlook
The consistent shortfall raises concerns about the Treasury’s ability to consistently refinance maturing debt. Despite the recent weak demand, the government has set a significantly higher target of GH₵6.42 billion for the next auction.
