For the first time in 2025, the Government of Ghana has fallen short of its treasury bill target, recording an 18% under-subscription in the latest auction. This development reflects growing challenges in meeting revenue expectations amidst tightening economic conditions.
According to auction results released by the Bank of Ghana, the government aimed to raise GH¢6.142 billion but managed to secure only GH¢4.99 billion in bids. Out of this, the government accepted GH¢3.31 billion, significantly below the target.
Breakdown of Auction Results
The 91-day treasury bill remained the most sought-after short-term instrument, with total bids reaching GH¢3.63 billion, representing 72.7% of total tenders. However, the government accepted GH¢2.33 billion, leaving approximately GH¢1.3 billion on the table.
For the 182-day bill, GH¢741.38 million was tendered, and GH¢574.49 million was accepted. Meanwhile, the 364-day bill attracted bids worth GH¢622.7 million, but the government accepted only GH¢406.07 million.
Securities Bids Tendered (GH&) Bids Accepted (GH&)
19 – Day Bill 3.631 bn 2.339 bn
182 – Day Bill 741.38 m 574.49 m
364 – Day Bill 622.07 m 406.07 m
Total 4.994 bn 3.31 bn
Target 6.142 bn
Yield Performance
Despite the under-subscription, interest rates remained relatively stable across the yield curve. The 91-day T-bill rate declined marginally by 12 basis points to 15.85%, while the 182-day bill held steady at 16.92%. The yield on the 364-day bill experienced a slight dip to 18.84% from the previous week’s 18.96%.
Implications for Government Financing
This under-performance raises concerns about the government’s ability to sustain its borrowing program amid ongoing fiscal pressures. Analysts suggest that declining investor interest, coupled with the need to manage yields, could complicate the government’s efforts to meet its funding requirements in the short term.
As economic conditions remain uncertain, the government may need to recalibrate its strategies to boost investor confidence and ensure the sustainability of its domestic borrowing program.
Story by: Mercy Addai Turkson #ahotoronline.com
