Ghana’s auction of short-term debt instruments recorded a second consecutive under subscription last week, with bids falling short by 27.16%, equivalent to GH¢1.53 billion, underscoring cautious investor sentiment in the fixed-income market.

At last Friday’s auction, the government received total bids worth GH¢4.70 billion against a target of GH¢5.64 billion.

With this, GH¢4.11 billion was accepted, reflecting a measured approach to debt issuance amid changing market dynamics.

The 91-day bill saw the highest demand, attracting GH¢3.50 billion in bids, of which GH¢3.02 billion was accepted.

The 182-day and 364-day bills recorded bids of GH¢582 million and GH¢619 million, with the government accepting GH¢582 million and GH¢500 million, respectively.

Yields on the 91-day bill declined by 2 basis points to 15.71%, while the 364-day instrument held steady at 18.84%.

The yield on the 182-day bill remained unchanged from the previous auction at 16.73%.

The results come as the government prepares to raise an additional GH¢4.39 billion at its next short-term debt sale scheduled for April 4, 2025.

The under-subscription signals investor caution in the fixed-income market.

SP/EB