Ghana government raises GH¢5.49b from Treasury bills in well-subscribed auction

The Ghana government has mobilised a total of GH¢5.49 billion from its latest Treasury bill auction held on Friday, August 1, according to results released by the Bank of Ghana.

The auction saw a strong investor demand as total bids submitted across the 91-day, 182-day and 364-day bills amounted to GH¢6.79 billion, exceeding the government’s target of GH¢3.86 billion.

In the end, GH¢5.49 billion worth of bids were accepted.

The auction, conducted under Tender 1966, is scheduled for issue on Monday, August 4, 2025.

The auction report, in the breakdown, noted that GH¢4.32 billion was accepted out of GH¢4.86 billion tendered for the 91-day bill.

For the 182-day bill, GH¢823.28 million was accepted out of the GH¢1.16 billion tendered.

The 364-day bill saw GH¢343.49 million accepted out of the GH¢774.65 million that was tendered.

Moderate interest rates

The report showed that despite some bids quoting as high as 25%, the Bank of Ghana allotted securities at significantly lower rates.

In the end, the weighted average discount rate for the 91-day bill was 10.04%, with Interest Rate at 10.29%.

The discount rate for the 182-day bill was 11.64% with Interest Rate at 12.36%, while the discount rate for the 364-day bill was 11.70% with Interest Rate at 13.25%.

Likewise, the ranges for the full allotment bid were much narrower.

The 91-day security ranged between 8.70% and 10.55%

The 182-day bill ranged between 9.90% and 12.41%.

The 364-day bill ranged between 10.00% and 12.13%.

The result indicates a bid-to-cover ratio of 1.76, pointing to sustained investor confidence and favourable cost of borrowing for the government amid high market liquidity.

A high bid-to-cover ratio, typically 2.0, suggests that investors are eager to lend to the government, which is a positive sign for an auction. Strong demand often results in lower interest rates and therefore lower borrowing costs for the government.

Conversely, a low bid-to-cover ratio (closer to 1.0) suggests weak demand and an indication that investors are less confident in the security or that the market is not finding the offered interest rate attractive.

The low ratio might lead to higher cost of borrowing for the government, as it has to offer more attractive rates to sell its Treasury bills

Previous and upcoming auctions

The previous auction (Tender 1965), held on July 25, recorded GH¢28.1 billion in tenders, of which GH¢15.16 billion was accepted – reflecting continuing strong appetite for government securities.

Meanwhile, the Bank of Ghana has announced a target of GH¢8.59 billion for the upcoming Tender 1967- more than twice that of the last auction.

Source: GNA

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