Treasury Bills Undersubscribed for 4th Week as Investors Prefer BoG Bills

For the fourth consecutive week, the Government of Ghana once again fell short of its treasury bills (T‑bills) funding goals. As per the latest Bank of Ghana auction, the government sought to raise GHS 4.551 billion, but only secured GHS 3.379 billion in bids—about 24% below the target. Of that amount, GHS 2.952 billion was accepted.

Investor Preference Shifts to BoG Bills

Analysts suggest the shift reflects investor confidence in Bank of Ghana (BoG) bills, which currently offer yields around 27%, comfortably outpacing Ghana’s inflation rate (approximately 18.4%)

Breakdown of Auction Bids & Acceptance

• 91‑day T‑bill: Bids of GHS 2.418 billion, of which GHS 2.191 billion was accepted.
• 182‑day T‑bill: GHS 716.29 million in bids; accepted GHS 603.74 million.
• 364‑day T‑bill: GHS 236 million in bids, with GHS 157.76 million accepted

Yields Ease Slightly

Despite weaker demand, T‑bill yields weakened modestly:

• 91‑day slipped by 1 bp to 14.69%
• 182‑day unchanged at 15.25%
• 364‑day fell to 15.69% from 15.74%

What This Means

1. Demand Dynamics: With strong yields and perceived safety, BoG bills are attracting more investors, directing liquidity away from T‑bills.
2. Government Funding Risks: Persistent under-subscription may force the government to rethink its borrowing strategy—either by hoping for improved market sentiment or by offering more competitive yields.
3. Market Outlook: Continued investor caution suggests that future T‑bill auctions may require strategic tweaks, such as harmonizing issuance volumes with realistic demand or enhancing yield attractiveness.

What to Watch Next

The coming weeks will be crucial. Investors and analysts will be keeping a close eye on upcoming treasury bill auctions to see whether the government adjusts its strategy, perhaps by increasing yields or reducing its targets to match market demand.

The Ghana treasury bill market is undergoing a shift. As investors lean toward Bank of Ghana bills for better returns and lower risk, the government faces the challenge of making its instruments more attractive. Whether through rate adjustments or confidence-building reforms, how the Ministry of Finance responds could shape the country’s short-term borrowing landscape.

Stay tuned for more updates on Ghana’s T-bill auctions, BoG bills, and local investment news.

Visit BoG's Website for the latest Treasury Bill Rates from the Bank of Ghana.

Read More: What Are Bank of Ghana Bills? A Guide for Ghanaian Investors