- GH¢5.57bn Treasury Bill Target Draws Only GH¢3.45bn In Accepted Bids
Ghana’s latest Treasury bill auction left a GH¢2.12 billion gap between the government’s target and the bids it accepted, with demand strongest for the shortest maturity and markedly weaker for one-year paper.
The Bank of Ghana reported GH¢4.33 billion in bids for the 91-day, 182-day and 364-day bills. It accepted GH¢3.45 billion against a target of GH¢5.57 billion—61.95% of the planned amount.
The shortfall was not simply a matter of bids being rejected: the total tendered was itself GH¢1.24 billion below the target.
The breakdown reveals a clear preference for shorter-term government paper. Investors tendered GH¢2.74 billion for 91-day bills, of which GH¢2.51 billion was accepted, a 91.67% acceptance rate.
For 182-day bills, GH¢721.62 million was tendered and GH¢596.62 million accepted, or 82.68%. The weakest result came from 364-day bills: of GH¢873.41 million tendered, only GH¢344.81 million was accepted, an uptake of 39.48%.
That divergence matters. The government’s funding target was missed across the auction, but the one-year bill attracted the lowest proportion of accepted bids.
The figures suggest investors were more willing to commit funds for shorter periods, while demand for longer exposure was weaker at the rates available to the issuer.
The weighted average interest rates for the week were 4.56% for 91-day bills, 6.17% for 182-day bills and 9.46% for 364-day bills. The stepped-up rates show that longer maturities carried higher returns.
But those higher rates did not translate into stronger uptake: the government accepted less than two-fifths of the 364-day bids submitted.
The auction results also show that investors’ requested rates on longer bills covered a wide range.
For the 364-day security, bids were tendered at discount rates ranging from 8.50% to 11.50%, while the range of rates allotted in full extended to 8.80% on a discount basis and 9.65% on an interest basis.
That spread suggests a difference between what some investors sought and what the government was prepared to accept. The notice does not state why particular bids were not taken, so the results alone cannot establish whether the lower acceptance reflected the government’s cost limits, investor pricing expectations or both.
Compared with the previous week’s tender, total bids declined by 13.54%, from GH¢5.01 billion to GH¢4.33 billion. Accepted bids fell by 15.96%, from GH¢4.11 billion to GH¢3.45 billion.
The previous tender, held on November 6, also accepted less than the amount tendered, but the latest results show a further reduction in both submitted and accepted amounts.
A single auction cannot establish a lasting change in investor appetite. Treasury bill demand can vary with maturity preferences, available cash and the rates offered. Still, the combination of lower tendered volume and low one-year uptake will be important to monitor in subsequent auctions, particularly if the government continues to seek funding at a similar scale.
The immediate issue is the difference between the funding target and the amount raised through accepted bids. A shortfall of GH¢2.12 billion means the planned issuance was not met through this auction.
The document does not specify whether the government will make up the difference through a later tender, other instruments or adjustments to its funding plans. It does, however, set a target of GH¢4.25 billion for Tender 2034, lower than the GH¢5.57 billion target in the latest results.
The lower upcoming target may reduce the volume sought at the next tender, but it does not by itself show that the funding pressure has eased. That will depend on the government’s financing needs and the bids investors submit.
The key question is whether a smaller target will be matched by stronger demand, or whether investors will continue to favour short maturities and remain selective on longer paper.
The auction structure also shapes who can participate directly. The Bank of Ghana notice says the wholesale auction is open only to Primary Dealers, which are required to act as market makers in government securities.
Members of the investing public can buy or sell through the secondary market using depository participants, including Primary Dealers. This distinction matters: the bids in the auction reflect primary-market activity, while public investors seeking access must use intermediaries or trade after issuance.
For the government, bills offer a way to raise funds over defined periods. For investors, each additional month of commitment brings a question of return and risk.
The latest results show that the relationship between those choices was not uniform: short bills attracted the bulk of accepted funds, while longer bills drew fewer accepted bids despite their higher weighted average interest rate.
That is the signal to watch not simply whether the auction raised less than its target, but where the gap occurred. Ghana accepted more than GH¢2.5 billion in 91-day paper, yet less than GH¢345 million in 364-day bills.
If that pattern persists, it could constrain the government’s ability to extend funding maturities and make the cost of longer-term borrowing a more prominent issue.
For now, the results point to a funding target that exceeded both the total bids submitted and the bids accepted. The next tender will show whether the lower planned amount improves coverage, and whether investor demand broadens beyond the shortest bill.
