Govt declines GHC1.67 billion in bids as T-bill auction falls short
Ghana’s government has recorded its first Treasury bill undersubscription of 2025, missing its target by GHC2.8 billion.
The shortfall has raised concerns over investor sentiment, as data from the Bank of Ghana (BoG) shows that while the government sought to raise GHC6.14 billion, it only attracted bids worth GHC3.32 billion — a 45 per cent undersubscription.
However, the government’s decision to reject GHC1.67 billion of the bids, further limited the amount raised.
The latest auction results reveal that of the GHC3.63 billion tendered for the 91-day Treasury bill, only GHC2.33 billion was accepted. The 182-day bill saw GHC741 million in bids, with GHC574 million accepted, while the 364-day bill had GHC622 million tendered, with only GHC406 million secured.
Interest rates on Treasury bills remained largely stable but showed signs of investor caution. The 91-day bill dipped slightly by 15 basis points to 15.73 per cent, while the 182-day bill was unchanged at 16.93 per cent.
The 364-day bill, however, surged by 87 basis points to 18.85 per cent, suggesting investors are demanding higher yields for longer-term commitments. With the next auction set at GHC5.64 billion, all eyes will be on investor response. Whether the government will adjust its approach or stick to its current strategy remains to be seen, but the latest results signal a potential shift in Ghana’s debt market dynamics.
