Government misses treasury bill target amidst declining interest rates 

The Government of Ghana slightly missed the target in the latest treasury bill auction, securing GH¢5.2 billion against a target of GH¢5. 38 billion, representing an undersubscription of approximately 3.15 per cent.

The auction conducted on Friday, May 9, 2025, saw the government accepting all bids across the 91-day, 182-day, and 364-day tenors, indicating continued investor interest despite a trend of declining interest rates, according to figures released by the Bank of Ghana on Monday.

An analysis of the auction results reveals that the 91-day bill remained the most attractive to investors, with total bids, amounting to 3.8 billion Ghana Cedis.

The 182-day bill garnered bids worth GH¢747.06 million, while the longer-term 364-day bill received bids, totaling GH¢611.14 million.

Notably, the interest rates across all tenors witnessed a further decline.

The yield on the 91-day bill decreased to 15.16 per cent from the previous week’s 15.23 per cent.

The rate for the 182-day bill fell to 15.70 per cent from 15.77 per cent and the 364-day bill saw a drop to 16.80 per cent from 16.95 per cent.

The government has set a higher target of GH¢6.68 billion for the next treasury bill auction.

This indicates a continued reliance on short-term debt instruments to meet its financing needs.

GNA