The government of Ghana is grappling with a significant shortfall in its treasury bill auctions, marking the seventh consecutive undersubscription as of April 2026. This trend highlights persistent liquidity issues and growing caution among investors regarding government borrowing.
The total amount borrowed from treasury bill auctions in April reached GHS 20.48 billion. However, the final auction recorded a notable shortfall of GHC 571.21 million against a target of GHC 5.01 billion. Investor demand fell short by 10.4 percent, indicating a shift in market sentiment.
Key auction results:
- The 91-day treasury bill attracted GHC 1.89 billion in bids, all of which were accepted.
- The 182-day treasury bill saw GHC 764.25 million in tenders, with full acceptance.
- The 364-day treasury bill recorded GHC 1.83 billion in bids, accepting GHC 1.78 billion.
Yields on these instruments have also seen fluctuations. The yield on the 91-day bill remained steady at 4.92 percent, while the yield on the 182-day bill increased by one basis point to 6.96 percent. Notably, the yield on the 364-day bill rose by seven basis points to reach 10.19 percent.
Despite these challenges, investor participation remained generally strong throughout April. In response to the undersubscription trend, the government plans to scale back its borrowing target to GHC 4.34 billion for the upcoming auction.
As observers watch these developments closely, they note that the ongoing liquidity constraints may continue to impact investor confidence in Ghana’s short-term securities market.
Kwame Ofori
Ama Serwah
Evelyn Mensah