Government Seeks GH¢7.5bn from Domestic Market
By ZED NEWSROOM
The government is seeking to raise about GH¢7.5 billion from the domestic market next week to meet its short-term financing needs, according to a notice issued by the Bank of Ghana.
In a notice (No. BG/FMD/2025/76) released on behalf of the Government, the central bank set a target of GH¢7.56 billion for the issuance of 91-day, 182-day and 364-day Treasury Bills under Tender 1989.
The new target represents a sharp increase in borrowing, coming in at about 90 per cent higher than the GH¢3.99 billion target set for the previous auction held on January 2. The development signals increased short-term funding requirements by government as it continues to rely on the Treasury bill market to meet cash flow needs.
The planned auction follows last week’s sale, in which government raised about GH¢4.3 billion from the domestic market, supported by sustained investor appetite for Treasury instruments offering relatively attractive yields.
At the last auction, the 91-day, 182-day and 364-day Treasury Bills were issued at average interest rates of 11.12 per cent, 12.55 per cent and 12.33 per cent per annum, respectively. These rates reflect the prevailing interest rate environment and ongoing expectations around monetary policy easing amid improving macroeconomic conditions.
Market analysts note that the significant increase in the auction target could test investor demand, although the Treasury bill market has remained resilient in recent months due to strong liquidity conditions and limited alternative low-risk investment options.
The primary auction is conducted on a wholesale basis and is restricted to Primary Dealer banks, which submit bids on behalf of themselves and their clients. However, members of the public and institutional investors who are unable to participate directly in the primary auction can still access the securities on the secondary market through the Ghana Fixed Income Market (GFIM), via licensed dealers.
Observers will be watching closely to see whether government is able to fully meet its GH¢7.56 billion target and how yields respond to the increased supply of short-term securities.
