The Government of Ghana raised GH¢2.21 billion from its latest Treasury bill auction, falling significantly short of its GH¢4.12 billion target after rejecting a substantial portion of bids submitted by investors.
The auction, held on September 18 for securities issued on September 21, attracted total bids of GH¢3.96 billion across the 91-day, 182-day and 364-day Treasury bills, according to the Bank of Ghana’s official tender results.
Government accepted about 55.91% of the total bids submitted, raising just 53.67% of its intended amount.
The results suggest that authorities were unwilling to accept bids at interest rates considered too high, even if doing so meant falling below the planned borrowing target.
The 91-day Treasury bill remained the most attractive instrument to investors, receiving GH¢2.29 billion in bids, of which GH¢1.88 billion was accepted. It accounted for about 85% of the total amount raised at the auction.
The 182-day bill attracted GH¢452.79 million in bids, with GH¢224.96 million accepted, while the 364-day bill received GH¢1.21 billion but only GH¢110.52 million was taken up.
The low acceptance rate for the one-year bill was particularly notable. Government accepted just about 9.1% of the bids submitted for the 364-day instrument, indicating a significant gap between the rates investors were seeking and what authorities were prepared to pay.
Weighted average interest rates stood at 4.50% for the 91-day bill, 6.49% for the 182-day bill and 9.98% for the 364-day bill.
The rates submitted by investors also varied considerably. For the 91-day bill, bids ranged from 4.45% to 6.00%, while the 182-day instrument attracted bids between 6.16% and 9.00%. The 364-day bill recorded bids ranging from 9.00% to 12.00%.
The government, however, allotted the securities at rates capped at 4.94% for the 91-day bill, 6.35% for the 182-day bill and 9.09% for the 364-day bill.
The latest auction also recorded a sharp decline in activity compared with the previous week. Tender 2024, held on September 11, attracted GH¢8.20 billion in bids and resulted in GH¢7.21 billion being accepted.
Compared with that auction, total bids fell by about 51.73%, while the amount accepted dropped by approximately 69.31%.
Despite the weaker participation, the government still rejected about GH¢1.74 billion of the GH¢3.96 billion in bids submitted, suggesting that pricing considerations played a significant role in the lower amount raised.
Rejecting higher-priced bids could help the government limit the cost of short-term borrowing, particularly as Treasury bill yields have declined significantly in 2026. However, repeatedly falling short of auction targets could also create refinancing pressure if upcoming obligations and cash requirements remain high.
The heavy reliance on 91-day bills also means the government will need to refinance those obligations more frequently. While shorter-term borrowing currently comes at a lower cost, it exposes the government to future changes in market liquidity, inflation expectations and investor appetite.
For the next auction, the government has set a lower target of GH¢2.75 billion across the same three maturities. This is about GH¢1.37 billion below the target for the latest auction.
The next auction will show whether investor demand recovers and whether the government can raise the amount it seeks without accepting significantly higher borrowing costs.
For now, the latest results point to a Treasury market where investors continue to provide funding, particularly through short-term instruments, while the government remains cautious about accepting higher rates.
