Government’s latest Treasury bill auction, held on Friday, August 29, 2025, raised only half of its target, highlighting ongoing challenges in meeting its short-term domestic borrowing needs.
Government managed to sell GHC3.33 billion against a target of GHC6.72 billion across all tenors amid declining investor appetite for short-term sovereign paper.
The auction results showed a mix of successes and shortfalls. For the 91-day bill, government received bids of GHC2.05 billion and accepted GHC2.01 billion at an interest rate of 10.32%.
The 182-day bill, bids tendered in totaled GHC1.14 billion, with GHC1.13 billion being accepted at a yield of 12.37%.
For the 364-day bill, the tenor that saw the largest shortfall, bids amounted to GHC321 million and only GHC194 million was accepted at a rate of 12.99%.
The continuous undersubscription indicates investor appetite for debt shifts to BoG Securities and underscores government’s continued reliance on short-term debt to refinance maturing obligations and manage liquidity pressures.
For the next Treasury bill auction scheduled for September 5, government seeks to raise 3.788 billion cedis, as it continues to navigate a challenging domestic financial landscape.
In August 20205, the Government raised GH¢2.72 billion in its latest Treasury bill auction, falling short of the GH¢4.24 billion target.
Data from the Bank of Ghana show that investors submitted bids worth GH¢3.09 billion, but only part of these offers was accepted, leaving a shortfall of about GH¢1.5 billion.
The auction results also confirmed a continued decline in yields across all maturities. The 91-day bill cleared at 10.13 percent, slightly lower than 10.20 percent recorded the previous week. The 182-day and 364-day notes also dipped marginally, settling at 12.23 percent and 13.08 percent respectively.
Despite the softer rates, investor interest remained evident. Accepted bids ranged between 9.27 and 12.80 percent for the 91-day note, 10.87 and 14.50 percent for the 182-day, and 10.71 and 13.50 percent for the 364-day.
Analysts say government’s decision to take less than the amount offered shows its determination to keep borrowing costs under control, even as it continues to rely heavily on T-bills to refinance maturing debts and fund short-term spending.
The outcome contrasts with the August 8 auction, where government accepted GH¢6.68 billion of the GH¢6.89 billion tendered. The next sale, scheduled for August 22, is targeting GH¢6.42 billion.
