For the third week in a row, the Government of Ghana has missed its Treasury bill target, raising only GH¢1.69 billion out of the GH¢4.39 billion it hoped to secure.
This results in a shortfall of GH¢2.69 billion, according to the Bank of Ghana’s latest auction report.
The government rejected GH¢2.37 billion in bids, likely because the proposed interest rates were too high compared to its expectations.
The treasury bill rates are as follows;
- 91-Day Bill:
Bids: GH¢3.38 billion / Accepted: GH¢1.45 billion.
- 182-Day Bill:
Bids: GH¢501.17 million / Accepted: GH¢81.09 million.
- 364-Day Bill:
Bids: GH¢176.26 million / Accepted: GH¢161.26 million.
With interest rate as;
Even with weak demand, T-bill rates dipped slightly:
- 91-day: down to 15.65% (–6 basis points)
- 182-day: down to 16.50% (–23 basis points)
- 364-day: down to 18.83% (–2 basis points)
This comes shortly after the Bank of Ghana raised its key policy rate from 27% to 28%, signaling continued efforts to tackle inflation.
Analysts say the government is deliberately rejecting higher interest rates to curb rising short-term borrowing costs, control inflation expectations and set the tone for future long-term bond issuance.
But consistently missing targets could strain cash reserves and limit fiscal options if investor confidence doesn’t bounce back soon.
Looking ahead, the Treasury plans to raise GH¢6.68 billion in its next auction—a sharp increase that signals rising short-term financing needs.
The big question is, will investors show up – and at what cost?
By: J.W Quarm.
