Government rejects GH₵1.67billion in bids amid treasury bill shortfall

Ghana’s government has recorded its first Treasury bill undersubscription of 2025, missing its target by GH₵2.8 billion. 

The shortfall has raised concerns over investor sentiment, as data from the Bank of Ghana (BoG) shows that while the government sought to raise GH₵6.14 billion, it only attracted bids worth GH₵3.32 billion — a 45 per cent undersubscription.

However, the government’s decision to reject GH₵1.67 billion of the bids, further limited the amount raised.

The latest auction results reveal that of the GH₵3.63 billion tendered for the 91-day Treasury bill, only GH₵2.33 billion was accepted. The 182-day bill saw GH₵741 million in bids, with GH₵574 million accepted, while the 364-day bill had GH₵622 million tendered, with only GH₵406 million secured.

Interest rates on Treasury bills remained largely stable but showed signs of investor caution. The 91-day bill dipped slightly by 15 basis points to 15.73 per cent, while the 182-day bill was unchanged at 16.93 per cent. The 364-day bill, however, surged by 87 basis points to 18.85 per cent, suggesting investors are demanding higher yields for longer-term commitments.

With the next auction set at GH₵5.64 billion, all eyes will be on investor response. Whether the government will adjust its approach or stick to its current strategy remains to be seen, but the latest results signal a potential shift in Ghana’s debt market dynamics.