The Government of Ghana has once again fallen short in its domestic debt mobilization efforts, recording its sixth consecutive undersubscription in the latest Treasury bill auction held on April 24.
The government aimed to raise GHC 4.475 billion to support budgetary operations and refinance maturing obligations, but total investor bids reached only GHC 4.433 billion. Ultimately, it accepted GHC 3.897 billion, resulting in a shortfall of about GHC 577.9 million.
This means government was unable to meet its full financing target for the sixth time in a row this year, highlighting ongoing challenges in the Treasury bill market.
Breakdown of the auction shows that for the 91-day bill, bids amounted to GHC 2.756 billion, with GHC 2.710 billion accepted at a yield of 4.92%. The 182-day bill attracted GHC 717.64 million in bids, with GHC 664.37 million accepted at 6.96%. For the 364-day bill, investors offered GHC 960.08 million, but only GHC 522.48 million was taken at a higher yield of 10.12%.
Although investor participation covered about 98% of the target, the government accepted roughly 87% of bids, suggesting it turned down some offers—particularly in the longer-term instruments—to avoid locking in higher interest costs.
The trend points to continued pressure on government borrowing in the domestic market, as it balances funding needs with rising interest rate expectations.
Source: 3news
