The government of Ghana has once again fallen short of its treasury bills target, missing the mark by 7%, according to auction results from the Bank of Ghana. The government raised GH¢6.413 billion in the latest T-bills auction, falling GH¢482 million shy of its GH¢6.89 billion target.
Despite the shortfall, all submitted bids were accepted. The 91-day bill accounted for GH¢4.244 billion, representing 66% of the total bids accepted. Investors tendered GH¢843 million for the 182-day bill, while the 364-day bill brought in a little over GH¢1.32 billion, though at a higher cost to the government.
Meanwhile, interest rates continued their upward trend on the yield curve, signaling increased borrowing costs for the government. The 91-day bill’s yield rose by 23 basis points to 27.19%, while the 182-day bill saw an increase to 27.98% from 27.78% the previous week. The 364-day bill experienced the most significant jump, with yields climbing by 61 basis points to 29.82%.
The rising interest rates are expected to exacerbate the government’s interest payment obligations, adding to Ghana’s fiscal challenges. The situation highlights the mounting pressure on government finances as it continues to rely heavily on short-term borrowing to meet funding needs.