–BY Grace Zigah
For the second consecutive week, the Government of Ghana failed to achieve its target in the Treasury bills (T-bills) auction, raising fresh concerns about investor appetite for short-term government securities despite a robust performance of the Ghanaian cedi on the international market.
According to the latest auction results released by the Bank of Ghana, the government secured GH¢5.216 billion from the sale of T-bills against a target of GH¢5.386 billion.
This represents a marginal undersubscription, as all the bids tendered were accepted.
The bulk of the funds—approximately GH¢3.858 billion, accounting for 73.96% of total bids—came from the popular 91-day T-bill.
The 182-day bill received GH¢747.06 million in bids, while a little over GH¢611 million was tendered for the 364-day bill.
Despite this underperformance, the local currency continues to outperform many of its peers globally.
The Ghana cedi has been named the best-performing currency in the world so far in 2025, buoyed by improved macroeconomic indicators, tighter fiscal discipline, and steady foreign inflows from remittances and exports.
However, the decreasing interest in T-bills suggests that lower yields may be impacting investor decisions.
Interest rates continued their downward trajectory on all three T-bill maturities, reflecting the government’s recent policy efforts to reduce domestic borrowing costs.
The 91-day bill saw its yield decline marginally by 9 basis points, settling at 15.16%.
Similarly, the 182-day bill yield fell to 15.70% from a previous rate of 16.03%, while the 364-day bill rate dropped by 15 basis points to 16.80%.
This declining trend in yields aligns with broader monetary policy strategies aimed at easing the government’s domestic debt burden, following a period of fiscal tightening and debt restructuring that began in 2023 under the Ghanaian authorities’ economic recovery programme, supported by the International Monetary Fund (IMF).
Over the past year, Ghana has been navigating the delicate balance between attracting domestic investment and maintaining debt sustainability.
The government has been heavily reliant on T-bills to finance its short-term funding needs, particularly after external financing options tightened due to sovereign credit downgrades and global market volatility.
While the lower yields are beneficial for the government’s borrowing costs, they may deter some institutional and individual investors seeking higher returns amid rising inflation and alternative investment options.
Analysts are watching closely to see whether future auctions will attract improved subscriptions, especially if market conditions continue to favor the cedi and inflation remains within target bands.
The coming weeks will be crucial in determining whether the Treasury’s funding strategy will need further adjustments, particularly in the context of upcoming budgetary pressures and the broader economic outlook.
