–BY Grace Zigah
For the second consecutive week, the Government of Ghana failed to achieve its target in the Treasury bills (T-bills) auction, raising fresh concerns about investor appetite for short-term government securities despite a robust performance of the Ghanaian cedi on the international market.
According to the latest auction results released by the Bank of Ghana, the government secured GH¢5.216 billion from the sale of T-bills against a target of GH¢5.386 billion.
This represents a marginal undersubscription, as all the bids tendered were accepted.
The bulk of the funds—approximately GH¢3.858 billion, accounting for 73.96% of total bids—came from the popular 91-day T-bill.
The 182-day bill received GH¢747.06 million in bids, while a little over GH¢611 million was tendered for the 364-day bill.
Despite this underperformance, the local currency continues to outperform many of its peers globally.
The Ghana cedi has been named the best-performing currency in the world so far in 2025, buoyed by improved macroeconomic indicators, tighter fiscal discipline, and steady foreign inflows from remittances and exports.
However, the decreasing interest in T-bills suggests that lower yields may be impacting investor decisions.
Interest rates continued their downward trajectory on all three T-bill maturities, reflecting the government’s recent policy efforts to reduce domestic borrowing costs.
The 91-day bill saw its yield decline marginally by 9 basis points, settling at 15.16%.
Similarly, the 182-day bill yield fell to 15.70% from a previous rate of 16.03%, while the 364-day bill rate dropped by 15 basis points to 16.80%.
This declining trend in yields aligns with broader monetary policy strategies aimed at easing the government’s domestic debt burden, following a period of fiscal tightening and debt restructuring that began in 2023 under the Ghanaian authorities’ economic recovery programme, supported by the International Monetary Fund (IMF).
