Gov’t to raise GH¢75.7bn from domestic treasury market in fourth quarter
By Praisebell Rosemond Larbi
The Government plans to raise GHS75.7 billion from the domestic treasury market during quarter four of 2025, according to the latest issuance calendar released by the Ministry of Finance and the Bank of Ghana.
The borrowing, spanning October to December 2025, will be primarily undertaken through short-term Treasury instruments.
Of the total amount, GHS8.12 billion represents fresh funds to meet additional financing needs, while approximately GHS67 billion will go towards rolling over maturing bills.
The calendar indicates that the bulk of the funds will come from the 91-day Treasury bill, which continues to dominate the short-term securities market due to its attractiveness to investors seeking liquidity and relatively lower risk.
Weak Investor Sentiment in Latest Auction
The most recent Treasury bill auction highlighted soft investor sentiment, as total bids fell well short of the government’s target. Out of a GHS6.58 billion target, the Treasury managed to secure only GHS2.93 billion in bids, representing a shortfall of about fifty-six per cent. Of the total bids submitted, GHS2.89 billion were accepted, while GHS36.46 million were rejected.
This underperformance, analysts say, reflects persistent tight liquidity conditions within the banking sector and cautious investor positioning as the year draws to a close.
Yields Edge Higher as Curve Steepens
The yield curve showed mild steepening during the auction, with interest rates inching up across the board. The 91-day bill advanced by seventeen basis points to 10.70 per cent, while the 182-day and 364-day bills rose to 12.44 per cent and 12.92 per cent, respectively.
Databank Research observed that the modest rise in yields was largely a result of repricing dynamics aimed at attracting additional demand amid subdued investor participation.
“We believe the modest rise in yields reflects repricing considerations to attract demand. This is expected to improve investor interest without compromising the Treasury’s cash management strategy,” Databank Research noted.
The firm further added that in the upcoming auction, yields are expected to remain broadly stable, with a slight upward bias at the short end given the persistent tight liquidity conditions.
Next Auction Target
The Treasury has announced plans to raise GHS6.82 billion in the next auction through the issuance of the 91-day, 182-day, and 364-day bills to cover GHS6.65 billion in maturing obligations.
