The Government of Ghana raised GHS 4.21 billion in its latest Treasury bill auction, falling short of its financing target despite accepting all bids submitted by primary dealers.
According to results released by the Bank of Ghana for Tender 2012, held on June 19, 2026, the government accepted the entire GHS 4.21 billion tendered across the 91-day, 182-day and 364-day Treasury bills.
The amount raised was GHS 1.07 billion below the auction target of GHS 5.27 billion, meaning the government achieved 79.76% of its intended borrowing for the week.
The outcome marks a significant decline from the previous auction, where the government sold GHS 8.29 billion out of total bids worth GHS 8.44 billion. Compared to that sale, the latest auction recorded a drop of GHS 4.09 billion, representing a 49.28% decrease in the amount raised.
Investor interest remained strongest in the 91-day Treasury bill, which attracted GHS 2.26 billion, accounting for 53.67% of total accepted bids. The 182-day bill received GHS 802.87 million, representing 19.08%, while the 364-day bill attracted GHS 1.15 billion, making up 27.25% of total subscriptions.
The full acceptance of all bids indicates that the government was prepared to take up all available demand even though the auction failed to meet its target.
Yields remained relatively low, reflecting Ghana’s improving macroeconomic environment and easing inflationary pressures.
The 91-day bill recorded a weighted average interest rate of 5.31%, while the 182-day bill settled at 7.13%. The 364-day bill attracted the highest return, with a weighted average interest rate of 11.36%, highlighting investors’ continued demand for higher compensation on longer-term instruments.
Market analysts say the dominance of the 91-day bill suggests investors remain cautious about locking funds into longer maturities. Many continue to favour shorter-term securities that offer greater flexibility amid uncertainty over future interest rates and monetary policy direction.
While lower Treasury bill rates help reduce the government’s domestic borrowing costs, weaker demand could create challenges if financing targets continue to be missed.
Looking ahead, the government has set a borrowing target of GHS 4.60 billion for Tender 2013, covering the same three Treasury bill tenors. The target is GHS 395.2 million higher than the amount raised in the latest auction but GHS 672 million lower than the target set for Tender 2012.
The reduced target may indicate an adjustment in borrowing expectations following the latest undersubscription.
The Bank of Ghana noted that the wholesale auction is open only to primary dealers, who are required to act as market makers in government securities. Individual investors can access Treasury bills through the secondary market via depository participants, including primary dealers.
Although the government continues to access domestic financing at relatively moderate rates, the latest auction highlights the impact of lower yields, shifting liquidity conditions and investor caution on demand for government securities.
The next Treasury bill auction will be closely watched to determine whether demand rebounds and whether the government can comfortably meet its revised borrowing target.
