Bank of Ghana Treasury Bill auction sees strong demand as over GH¢8billion bids are turned down

The Bank of Ghana (BoG) has announced the results of its latest Treasury bill auction, held on February 14, 2025, revealing robust investor interest despite a challenging economic environment. 

The auction, which targeted an issuance of GH₵8,068 million across 91-day, 182-day, and 364-day Treasury bills, saw a total of GH₵17,699.41 million tendered by investors, underscoring the continued appetite for government securities.

Key highlights from the auction

91-Day Bill: The 91-day bill attracted bids worth GH₵6,820.71 million, with GH₵5,226.44 million accepted by the central bank. The bid rates ranged between 22.2927 percent and 26.2119 percent, with the weighted average rate settling at 25.1691% per annum.

182-Day Bill: For the 182-day bill, GH₵4,594.54 million was tendered, with GH₵1,457.36 million accepted. The bid rates ranged from 24.0000 percent to 24.9453 percent, with a weighted average rate of 24.4117 percent per annum. The higher rates compared to the 91-day bill suggest that investors are demanding higher returns for longer maturities.

364-Day Bill: The 364-day bill saw the highest tendered amount at GH₵6,284.16 million, with GH₵2,750.43 million accepted. The bid rates ranged from 22.4506 percent to 25.5120 percent, with a weighted average rate of 22.5254 percent per annum. Despite the higher acceptance rate, the weighted average rate remained relatively stable, reflecting investor confidence in the government’s medium-term fiscal outlook.

Market analysis

The auction results highlight the government’s continued reliance on domestic borrowing to finance its fiscal operations. The strong demand for Treasury bills, particularly the 364-day bill, suggests that investors remain confident in the government’s ability to meet its obligations.

Previous auction insights

In the previous auction held on February 7, 2025, the government of Ghana rejected GH₵2.9 billion in Treasury bill bids following a highly oversubscribed auction, as investors flooded the market with offers totaling GH₵10.6 billion. The Treasury had set a target of GH₵7.3 billion but ended up accepting GH₵7.7 billion, slightly above its goal. The move to reject a significant portion of the bids is believed to be part of the government’s strategy to manage borrowing costs and maintain fiscal discipline.

The 91-day bill emerged as the most sought-after security in the previous auction, with bids reaching GH₵6.1 billion. However, the government accepted only GH₵3.9 billion of these offers. The yield on the 91-day bill fell by 43 basis points to 27.98 percent, reflecting a decline in interest rates. Similarly, the 182-day bill attracted GH₵4.4 billion in bids, with GH₵3.8 billion accepted. Its yield also dropped by 21 basis points to 28.68 percent. Notably, no 364-day bills were issued during this auction.

Looking ahead

The next auction, Tender 1943, is scheduled for February 21, 2025, with a target issuance of GH₵7,729 million across 91-day, 182-day, and 364-day Treasury bills. Market participants will be closely watching the auction results for further signals on interest rate trends and investor sentiment.