Investor interest in Ghana’s short-term debt instruments continues to surge, reflecting a rebound in market confidence, even as the government takes a measured borrowing approach to manage debt and reduce borrowing costs.
In the latest treasury bill auction held on April 21, 2025, the government received an overwhelming GH¢6.444 billion in bids, far surpassing its target of GH¢6.607 billion. However, in a move signaling fiscal prudence, it accepted only GH¢4.630 billion, rejecting GH¢1.814 billion worth of bids.
This comes amid a steady decline in interest rates across short-term instruments. The 91-day bill now yields 15.4%, down from recent highs, while the 182-day and 364-day bills offer 16.18% and 18.62%, respectively. The dip in yields suggests improved macroeconomic outlook and government credibility in the eyes of investors.
According to auction data from the Bank of Ghana, the 91-day bill remained the most sought-after, with bids totaling GH¢5.058 billion, of which GH¢3.674 billion was accepted. The 182-day and 364-day bills also saw substantial interest, though selectivity in bid acceptance remained high.
Analysts believe the government’s rejection of excess bids could indicate an effort to avoid locking in higher interest rates, especially as macroeconomic conditions improve and inflation slows. It also reflects a cautious fiscal strategy, possibly aimed at aligning domestic borrowing with ongoing negotiations to regain access to international capital markets.
With another GH¢6.145 billion borrowing target set for the next auction on April 25, all eyes are on how the government continues to balance investor demand with its broader debt management agenda.
