Ghana’s short-term government financing needs are facing renewed strain as Treasury bill auctions continue to fall short of target, raising fresh questions about investor confidence and the competitiveness of government securities in the current market environment.
For the second consecutive week, the Treasury struggled to attract enough bids to meet its funding requirements, mobilising GH¢3.9 billion against a target of GH¢5.68 billion—a significant 30.45 percent shortfall.
Market observers say the persistent undersubscriptions point to growing caution among institutional investors, who appear to be shifting funds toward higher-yielding alternatives such as fixed deposits and equities. This has forced the Treasury to accept slightly higher bids to avoid widening the financing gap.
Bank of Ghana auction data shows the 91-day bill remained the most sought-after instrument, receiving GH¢3.07 billion in tenders, of which GH¢2.97 billion was accepted. The 182-day and 364-day bills also recorded modest demand but still far below expectations.
As a result, yields edged up across the curve, reflecting both increased investor bargaining power and the government’s need to secure liquidity. The 91-day rate climbed to 11.02%, while the 182-day and 364-day bills rose to 12.66% and 13.08%, respectively.
Analysts warn that unless yields become more competitive or market liquidity improves, the Treasury may continue to face challenges meeting its short-term financing targets—particularly as upcoming maturities intensify rollover pressures.
Despite the recent setbacks, the government plans to raise GH¢6.42 billion in the next auction, signalling continued reliance on T-bills as a key source of domestic financing.
