Investor appetite for Ghana’s short-term debt instruments is weakening, with the government recording a shortfall of more than GHC1 billion in its latest Treasury bill auction—marking the third consecutive undersubscription.

The government missed its GHC4.67 billion target by GHC1.05 billion, attracting total bids of GHC3.16 billion. Of this amount, the Bank of Ghana accepted GHC2.94 billion, a notable shift from the strong oversubscriptions recorded earlier in the year.

The auction results point to a changing investor landscape, with market participants increasingly demanding higher returns for their funds.

The 91-day bill remained the most sought-after instrument, drawing bids of GHC2.02 billion, with GHC1.99 billion accepted at a yield of 4.81 percent. The 182-day bill recorded bids of GHC498 million, of which GHC416 million was accepted at an interest rate of 6.71 percent.

For the 364-day bill, investors submitted bids totaling GHC648 million, while the government accepted GHC533 million at a yield of 9.84 percent.

This shift in investor sentiment comes at a difficult time for fiscal authorities as they navigate tightening financing conditions.

Despite the weakening demand, the government is pressing ahead with its borrowing plans. On April 10, 2026, it is expected to return to the market with a significantly higher target of GHC7.57 billion.

Analysts warn that if the trend of undersubscription persists, the government may be compelled to raise interest rates further to attract sufficient funds to meet its short-term financing needs.