Ghana Raises GH¢2.7bn in Undersubscribed T-Bills Auction

The Government of Ghana successfully raised GH¢2.728 billion from its most recent treasury bills auction held on Friday, August 15, 2025. However, the amount fell significantly short of the GH¢4.24 billion it had initially targeted, according to official data published by the Bank of Ghana.

This auction, referenced as Tender Number 1968, is scheduled for issue on Monday, August 18, 2025. It attracted total bids amounting to GH¢3.009 billion from investors seeking to purchase short- and medium-term government securities across three maturity categories—91-day, 182-day, and 364-day bills.

Out of the total bids submitted, the government accepted 90.65%, mobilizing GH¢2.728 billion—over GH¢1.5 billion below the set target, making the auction technically undersubscribed.

Maturity Breakdown

Demand was strongest for the shortest-dated instrument. The 91-day treasury bill received bids totaling GH¢2.059 billion, of which GH¢2.023 billion was accepted by the government.

The 182-day bill attracted GH¢678.18 million in bids. From this, GH¢537.69 million was accepted, while the remainder was rejected, likely due to rates falling outside the government’s acceptable range.

The longest tenor, the 364-day bill, saw the lowest level of participation. Investors tendered GH¢272.58 million, with only GH¢167.66 million accepted by the government. This reflects continued investor caution around longer-term risk exposure and interest rate volatility.

Interest and Discount Rate Performance

The auction saw a broad range of interest rates offered by investors, indicating varying expectations for returns in the current economic environment.

91-day T-bill: Interest rates ranged from 9.2796% to 12.8000%. The government fully allotted bids with interest rates from 9.5000% to 10.7831% and corresponding discount rates between 9.2796% and 10.5000%.
182-day T-bill: Bids came in with rates spanning from 0.8747% to 14.5000%. The accepted bids carried interest rates between 11.5000% and 12.8000%, and discount rates ranged from 10.8747% to 12.0301%.
364-day T-bill: Interest rate bids ranged from 10.7142% to 13.5000%. The government accepted rates between 11.9999% and 13.3144%, with discount rates between 10.7142% and 11.7500%.

Weighted Average Rates for the Week

For the week beginning August 18, the weighted average interest and discount rates for each maturity were as follows:

91-day bill: 10.1374% (interest), 9.8868% (discount)
182-day bill: 12.2302% (interest), 11.5255% (discount)
364-day bill: 13.0865% (interest), 11.5721% (discount)

These averages reflect continued upward pressure on rates, especially for longer-term bills, driven by tighter liquidity conditions and higher inflation expectations.

Market Response and Outlook

While the auction did not meet its full target, the amount raised still signals significant interest in short-term government securities, especially the 91-day bill. Analysts attribute the underperformance partly to limited market liquidity and investor hesitance to commit to longer durations amid macroeconomic uncertainty.

Despite the shortfall, the government’s ability to mobilize close to GH¢3 billion highlights a resilient domestic debt market and investor appetite for low-risk, short-tenor instruments.

Looking ahead, the government has set an ambitious target of GH¢6.426 billion for its next auction, Tender Number 1969. This aggressive borrowing plan may indicate pressing fiscal needs, likely for debt servicing and public sector financing.

However, the government’s ability to meet such targets will depend heavily on prevailing market conditions, interest rate dynamics, and investor confidence in the broader economy.

As treasury auctions remain a crucial tool for government financing, close attention will be paid to how future auctions perform and how rate movements evolve in response to both domestic and global economic trends.