T-Bill Auction Falls Short of GHS 3.86 Billion Target as Borrowing Costs Edge Higher
The Government of Ghana raised a total of GHS 3.34 billion from the domestic debt market at the latest Treasury bills auction held on June 27, 2025, falling slightly short of its GHS 3.86 billion target.
Data published by the Bank of Ghana show that investor demand remained strong, with bids totalling GHS 3.64 billion across the 91-day, 182-day, and 364-day bills.
However, only GHS 3.34 billion was accepted by the government, suggesting a cautious approach to managing borrowing costs amid rising yields.
The 91-day bill attracted the lion’s share of interest, with bids amounting to GHS 2.90 billion, all of which were accepted.
The weighted average discount rate for the instrument stood at 14.17%, slightly below the market range of 14.30% to 15.10%. Meanwhile, the 182-day and 364-day bills saw lower investor uptake, with GHS 385.82 million and GHS 60.81 million accepted respectively.
The corresponding interest rates were 15.25% for the 182-day bill and 15.66% for the 364-day bill — both reflecting higher investor return expectations compared to prior weeks.
The uptick in interest rates is consistent with the recent trend of tightening liquidity conditions and elevated inflation as investors seek higher compensation for lending to the government.
In the preceding auction on June 20, the government raised GHS 2.95 billion from total bids of GHS 3.37 billion, reinforcing a steady pattern of strong demand, albeit with moderated uptake by the Treasury.
Looking ahead, the Bank of Ghana has announced a GHS 3.36 billion target for the next auction scheduled for July 4, 2025, as government financing needs persist amid fiscal consolidation efforts under the IMF-supported programme.
Analysts note that while investor appetite for short-term debt remains robust, the rising cost of borrowing could pose risks to Ghana’s domestic debt sustainability in the absence of complementary fiscal adjustments.
