Ghana Treasury bill auction undersubscribed for second week
By Praisebell Rosemond Larbi
The Government of Ghana fell short of its Treasury bill target for the second consecutive week, according to the latest auction results released by the Bank of Ghana.
For the auction held on Friday, May 31, 2025, the government sought to raise GHS6.669 billion across the 91-day, 182-day, and 364-day bills. However, total bids amounted to GHS5.471 billion, representing a shortfall of GHS1.198 billion.
Of the total bids tendered, the government accepted GHS4.376 billion and rejected GHS1.095 billion. Market analysts say the rejection of bids reflects the government’s strategy to manage debt-servicing costs by keeping yields lower despite investor appetite for higher returns.
The 91-day Treasury bill continued to dominate investor interest, attracting GHS3.507 billion in bids, representing 64.07 percent of total subscriptions. The government accepted a large portion of these bids, maintaining the yield at 14.79 percent, unchanged from the previous week.
The 182-day bill attracted GHS1.806 billion in bids, of which GHS1.674 billion were accepted. The yield for the half-year bill dropped by three basis points to 15.45 percent, indicating the government’s preference for lowering borrowing costs in the medium term.
On the longer end, the 364-day bill saw limited investor participation, with total bids amounting to just GHS157.18 million. Only GHS48.44 million were accepted. The yield on the one-year paper declined by 12 basis points to 15.71 percent.
Market Reaction and Outlook
Market watchers say the continued drop in interest rates, especially on the medium- and long-term instruments, aligns with the government’s efforts to gradually ease pressure on the domestic debt market following last year’s debt restructuring.
However, the consistent undersubscription raises questions about liquidity among market participants and broader investor sentiment amid ongoing macroeconomic challenges.
The government is expected to return to the market next week with another round of Treasury bill auctions as it seeks to meet its short-term financing needs while keeping borrowing costs contained.
