Demand for Ghana’s treasury bills weakened sharply in the second week of July 2025, as the government faced a significant undersubscription at its latest auction. Data from the Bank of Ghana revealed that the Treasury aimed to raise GHC7.52 billion but received only GHC4.53 billion in total bids—falling short by GHC2.99 billion, representing a 39.68% shortfall.
A breakdown of the bids shows that the 91-day bill received the most investor interest, with GHC3.63 billion accepted out of GHC3.71 billion in bids. The 182-day bill followed, with GHC804 million accepted from GHC814 million in bids. However, the 364-day bill saw the weakest performance, with just GHC100 million accepted from GHC1.6 billion in bids, indicating investor caution on longer-term notes.
This auction marks a reversal in yield movement trends, as rates on short-term government securities edged up after several months of decline. The 91-day yield rose by 9 basis points to 14.65%, the 182-day increased slightly by 1 basis point to 15.02%, and the 364-day yield jumped 25 basis points to 15.41%.
Market analysts suggest that the slight uptick in yields could reflect investor resistance to current pricing amid expectations of large upcoming maturities. The poor subscription levels may also signal tightening liquidity or a shift in market sentiment, with investors demanding higher returns for locking in funds.
Looking ahead, the government is targeting GHC5.43 billion at its next auction. With rising yields and fluctuating demand, market watchers will be closely observing whether investor confidence stabilizes or if pricing pressures persist in the weeks to come.
Source: Citi newsroom