The government has turned down GHS 2.9 billion in Treasury bill bids despite strong investor demand, as part of efforts to manage borrowing costs and stabilise interest rates.
According to the latest auction results from the Bank of Ghana, investors tendered GHS 10.6 billion in bids, significantly overshooting the government’s GHS 7.3 billion target.
However, only GHS 7.7 billion was accepted, with authorities rejecting bids that likely carried higher interest rate expectations.
The 91-day treasury bill attracted the most interest, with GHS 6.1 billion in bids, out of which GHS 3.9 billion was accepted.
Read Also: 2025 Budget: IMF, Gov’t to discuss tax cuts and energy debt
The yield on this bill dropped by 43 basis points to 27.98%.
For the 182-day bill, GHS 4.4 billion in bids were received, with GHS 3.8 billion accepted.
The yield declined by 21 basis points to 28.68%. Notably, no 364-day bills were issued in this auction.
The move aligns with the government’s fiscal strategy to limit expensive borrowing while ensuring stable yields in the market.
The drop in rates also coincides with easing inflation in January, which helps maintain investor confidence in real returns.
Looking ahead, the Treasury aims to raise GHS 8 billion in the next auction, with expectations of continued strong investor interest.
