T-Bills undersubscribed again, govt misses GH₵3.9bn target

By: Rebecca Okine

Government treasury bills have once again fallen short of their target, reigniting concerns about investor confidence and funding stability.

According to auction results released by the Bank of Ghana on May 30, 2025, the government aimed to raise GH₵3.9 billion but received only GH₵3.5 billion in bids—missing the mark by approximately 9 percent.

This development comes just two weeks after a temporary recovery, when T-bills were oversubscribed by more than GH₵1 billion, ending a three-week streak of underperformance. That rebound, however, appears to have been short-lived.

Despite the shortfall, there was a notable shift in the latest auction: all submitted bids were accepted, marking the first time in weeks that no bids were rejected. This move signals the government’s willingness to accommodate market demand amid tightening fiscal conditions.

Interest rates on all tenors also declined slightly. The 91-day bill dropped to 14.79 percent , the 182-day to 15.48 percent, and the 364-day slipped just under 16 percent. Analysts suggest the consistent decline in rates reflects efforts by the government to control borrowing costs and promote fiscal discipline in line with IMF-supported reforms.

The trend raises questions about how the government will meet its short-term financing needs if investor interest continues to wane.