Bank of Ghana T-Bill Auction Sees High Demand Despite Crisis

Bank of Ghana Treasury Bill Auction: Strong Investor Demand Amid Economic Challenges

The Bank of Ghana (BoG) has announced the outcome of its most recent Treasury bill auction, which took place on February 14, 2025. Despite persistent economic challenges, the sale generated a lot of interest from investors. The goal of the auction was to issue GH₵8,068 million worth of Treasury bills with maturities of 91, 182, and 364 days. However, GH₵17,699.41 million was tendered, substantially above the offering due to investor demand.

Auction Details

91-Day Bill: The 91-day bill garnered GH₵6,820.71 million in bids, with GH₵5,226.44 million accepted by the BoG. The interest rates ranged from 22.29% to 26.21%, with a weighted average rate of 25.17% per annum.
182-Day Bill: The 182-day bill attracted GH₵4,594.54 million in bids, with GH₵1,457.36 million accepted. Bid rates ranged from 24.00% to 24.95%, and the weighted average rate was 24.41%.
364-Day Bill: The 364-day bill saw the highest interest, with GH₵6,284.16 million in bids, and GH₵2,750.43 million was accepted. The bid rates ranged from 22.45% to 25.51%, with a weighted average rate of 22.53%.

Investor confidence in the government’s capacity to fulfill its fiscal responsibilities in spite of economic constraints is reflected in the high demand for these Treasury bills. There was a premium on longer maturities because of the perceived risk, as evidenced by the noticeably higher weighted average rates for the longer-term bills.

Market Insights and Future Outlook

Ghana’s ongoing reliance on domestic borrowing to finance its budgetary operations is evident from this auction. The 364-day bill, in particular, received the most demand, indicating that investors are optimistic about the government’s medium-term financial stability.

In contrast, bids of GH₵2.9 billion were turned down at the previous auction, which took place on February 7, 2025. This decision underscores the government’s approach to controlling borrowing rates while maintaining fiscal restraint. The BoG’s cautious handling of these bids is nonetheless essential to keeping the nation’s financial outlook stable.

Looking forward, February 21, 2025 is the date of the upcoming Treasury bill auction (Tender 1943). In order to assess future developments in interest rates and market mood, investors will be constantly monitoring.

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