The Government of Ghana has raised GH¢2.72 billion in its latest Treasury bill auction, falling short of the GH¢4.24 billion target set for August 15, 2025.
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.
Background
It is recalled that for its auction scheduled for Friday, August 15, 2025, the government aimed to raise a more modest 4.24 billion cedis across all tenors. 4.24 billion cedis represents a notable reduction from the last auction, where it failed to meet its target.
According to official results from the Bank of Ghana, government only managed to raise 6.68 billion cedis against a more ambitious target of 8.58 billion cedis in its most recent Treasury auction. This left a shortfall of 1.90 billion cedis and ended a brief period of oversubscriptions.
This strategic shift towards a more modest borrowing target could be an attempt to align with prevailing market conditions and investor appetite, which appears to be waning.
Analysts suggest that the consistent failure to meet borrowing targets could signal a need for government to reassess its fiscal needs and debt management approach. Government’s borrowing strategy is under close scrutiny as it works to meet targets set under its IMF-supported programme.
The ability to manage domestic debt effectively, particularly through Treasury bill auctions, is a key indicator of fiscal health and a prerequisite for maintaining investor confidence.
This latest move to lower the borrowing target could be a proactive measure to ensure a successful auction and avoid further shortfalls.
