Interest rates on treasury bills have declined to 15.4% in the government’s most recent auction on April 21, 2025.
Demand for short-term instruments has surged recently, with the government consistently rejecting bids.
In this week’s auction, the government received bids totalling GH¢6,444 billion but accepted only GH¢4.630 billion away from its target of GH¢6.607 billion. A total of GH¢1.814 billion in bids was also rejected.
According to auction results released by the Bank of Ghana, the 91-day bills saw the most subscriptions.
However, while the 364-day bill received bids totalling GH¢481.09 billion, only GH¢324.56 billion was accepted.
The 91-day bill attracted bids amounting to GH¢5.058 billion, of which GH¢3.674 billion was accepted.
Additionally, the 182-day bill saw tenders worth GH¢905.07 million, with GH¢630.66 million accepted.
Meanwhile, interest rates have continued to decline over the past few weeks as the 91-day bill now stands at 15.4%.
The 182-day bill stands at 16.18%, as the 364-day bill stands at 18.62%.
The government plans to borrow GH¢6.145 billion in its next treasury bill auction on April 25, 2025.
The recent surge in demand for short-term instruments signals strong investor confidence. The government’s decision to reject excess bids suggests either a cautious borrowing approach or an effort to avoid high interest rates.
Treasury bills remain the government’s primary source of borrowing as it seeks to regain access to the international capital market.
