The latest Ghana Treasury bill auction raised GH¢2.2 billion, leaving government short of both its target and the amount needed to refinance maturing bills for the second consecutive week.
Government had targeted GH¢4.1 billion against maturities of GH¢3.2 billion. Investors submitted GH¢3.96 billion, but approximately GH¢1.74 billion in bids were rejected.
The Bank of Ghana listed the exercise as Tender 2025 in its September 20 auction results.
The decision points to a clear preference for “cost containment over meeting auction targets” as investors sought substantially higher returns.
Government pushes back on yields
The upper end of submitted yields increased by 205 basis points from the previous week. Government responded by cutting the highest accepted yield by 163 basis points.
Weighted average clearing yields consequently declined by about 14 basis points across the three tenors.
The 91-day bill cleared at 4.69%, while the 182-day instrument settled at 6.49%. The 364-day bill recorded a yield of 9.98%.
Government’s refusal to accept all available bids meant it borrowed GH¢1 billion less than the bills falling due. It also raised barely half of its announced target, despite investor demand coming close to GH¢4 billion.
BoG releases liquidity
In a separate money market operation, the Bank of Ghana issued GH¢21.4 billion in 14-day central bank bills at 10.50%.
With GH¢23 billion of the instruments maturing, the transaction resulted in a modest net liquidity injection into the banking system.
Attention now shifts to the final Treasury bill auction for September. Government is targeting GH¢2.75 billion against maturities of GH¢2.1 billion, implying planned net borrowing of roughly GH¢650 million.
Another large rejection of bids would reinforce the government’s resistance to rising short-term rates. Accepting higher yields, however, could reveal greater funding pressure as the quarter closes.
READ ALSO: Ghana, AU Align Strategy Ahead of Mahama’s 2027 Chairmanship
