The Government of Ghana exceeded its Treasury bill fundraising target after securing GH¢11.55 billion from its latest auction, driven by strong investor demand, particularly for the one-year security.
According to the Bank of Ghana’s auction results, investors submitted bids worth GH¢12.37 billion, while the government accepted GH¢11.55 billion, representing an acceptance rate of 93.32%. The amount raised was 21.63% higher than the government’s target of GH¢9.49 billion for the sale of 91-day, 182-day and 364-day Treasury bills.
Demand at the auction remained robust, with total bids reaching 130.34% of the government’s financing target. Most investors preferred the 364-day Treasury bill, which attracted GH¢8.11 billion in bids. Out of this, the government accepted GH¢7.82 billion, accounting for nearly 68% of the total amount raised.
The 91-day bill received GH¢2.95 billion in bids, with GH¢2.60 billion accepted, while the 182-day bill attracted GH¢1.31 billion, of which GH¢1.12 billion was allotted.
Interest rates remained highest on the one-year instrument. The weighted average interest rates settled at 5.79% for the 91-day bill, 7.69% for the 182-day bill and 12.97% for the 364-day bill. The corresponding discount rates were 5.71%, 7.40% and 11.48%, respectively.
The higher yield on the one-year bill reflects the premium investors demand for committing funds over a longer period. Even so, the strong appetite for the 364-day security gives the government a slightly longer repayment horizon compared with relying more heavily on shorter-term borrowing.
Although the Treasury accepted most of the bids received, it rejected GH¢826.34 million, comprising GH¢350 million for the 91-day bill, GH¢185.89 million for the 182-day bill and GH¢290.45 million for the 364-day instrument.
The Bank of Ghana’s data also showed that investors quoted discount rates ranging between 5.56% and 7.85% for the 91-day bill, 7.23% and 9.10% for the 182-day bill, and 11.20% to 12.00% for the 364-day bill. However, successful bids were accepted within narrower ranges of 5.56% to 5.78%, 7.23% to 7.50%, and 11.20% to 11.50%, respectively.
Compared with the previous auction, the government raised 15.70% more than the GH¢9.98 billion accepted a week earlier, despite overall bids declining slightly from GH¢12.70 billion to GH¢12.37 billion.
The larger amount accepted is likely to support the government’s short-term financing needs, including refinancing maturing Treasury bills and managing its domestic cash position. Since the auction notice does not disclose the value of securities maturing during the week, it is not possible to determine whether the government recorded a net increase or reduction in borrowing.
Looking ahead, the government has set a target of GH¢5.87 billion for the next Treasury bill auction, significantly lower than this week’s GH¢9.49 billion target. The reduced borrowing target could indicate lower immediate financing needs, although the final amount raised will depend on investor demand, market liquidity and the government’s refinancing requirements.
