Ghana’s government faces increasing financing pressure as its short-term Treasury bill auctions entered a sixth consecutive week of undersubscription, raising fresh concerns about investor confidence and the sustainability of public sector liquidity.
According to the Bank of Ghana’s latest auction report, the government missed its GH₵3.4 billion target by GH₵388 million, accepting all submitted bids totaling just GH₵3.01 billion — translating into an 11.56% shortfall.
The breakdown of investor participation shows most of the bids skewed toward the 91-day bill, which attracted GH₵2.03 billion, while the 182-day and 364-day bills brought in GH₵622.79 million and GH₵316.27 million, respectively.
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Despite the shortfall, the government accepted 100% of submitted bids, underscoring its immediate need for cash to fund recurrent expenditure. This follows a downward revision of borrowing targets from GH₵3.9 billion two weeks ago to GH₵3.4 billion last week.
What is more concerning for market observers is that the interest rates continue to decline, even amid these shortfalls — a signal that the government remains focused on its disinflationary agenda, despite the apparent cooling investor appetite.
The 91-day yield fell from 14.6938% to 14.5669%, the 182-day rate dipped to 15.0192% from 15.2506%, and the 364-day bill declined from 15.6564% to 15.1679%.
Analysts say the persistent undersubscription, combined with falling returns, is prompting investors to look elsewhere. The trend has compounded doubts over whether the government can continue to finance short-term obligations without either raising rates or securing additional external funding.
“This is a delicate moment. The government wants to manage debt costs through lower rates, but the market is clearly responding with a risk-off stance,” noted a senior portfolio manager at a local investment house.
Compounding the problem is the limited availability of alternative financing sources, making T-bills a critical pillar in Ghana’s short-term debt strategy. The disconnect between declining yields and muted investor participation is now forcing a broader conversation on market incentives.
Looking ahead, the government has scaled back its target for the upcoming auction to GH₵7.5 billion, a sign that it may be preparing for continued tepid interest unless policy recalibrations are made.
For now, investors and policy analysts alike are watching closely to see whether the downward yield strategy can continue — or whether the market will eventually force the government’s hand.
Last Updated on July 7, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
