Strong Investor Demand in BoG Treasury Bill Auction as Over GH¢8 Million in Bids Rejected

The Bank of Ghana (BoG) has released the results of its latest Treasury bill auction, held on February 14, 2025, indicating significant investor interest despite prevailing economic challenges.

The auction sought to raise GH₵8,068 million across 91-day, 182-day, and 364-day Treasury bills but attracted total bids of GH₵17,699.41 million—highlighting sustained demand for government securities.

Key Auction Results

91-Day Bill: Investors tendered GH₵6,820.71 million, out of which GH₵5,226.44 million was accepted. Interest rates ranged between 22.2927% and 26.2119%, with a weighted average rate of 25.1691% per annum.

182-Day Bill: The 182-day bill received bids totaling GH₵4,594.54 million, with GH₵1,457.36 million accepted. Rates varied from 24.0000% to 24.9453%, with a weighted average of 24.4117% per annum, indicating higher yield demands for longer-term investments.

364-Day Bill: This bill saw the highest investor interest, with GH₵6,284.16 million tendered and GH₵2,750.43 million accepted. Bid rates ranged from 22.4506% to 25.5120%, with a weighted average rate of 22.5254% per annum, reflecting investor confidence in the government’s medium-term fiscal management.

Market Insights

The results demonstrate the government’s continued reliance on domestic borrowing to fund its financial obligations. The high demand for Treasury bills, especially the 364-day option, suggests investors remain optimistic about the government’s ability to meet its debt commitments.

Previous Auction Trends

In the auction held on February 7, 2025, the government rejected GH₵2.9 billion in bids after an oversubscription, with total offers reaching GH₵10.6 billion. Despite setting a target of GH₵7.3 billion, the government accepted GH₵7.7 billion. This selective acceptance is seen as part of a broader strategy to control borrowing costs and maintain fiscal discipline.

During that auction, the 91-day bill was the most sought-after, attracting GH₵6.1 billion in bids, though only GH₵3.9 billion was accepted. The yield on the bill dropped by 43 basis points to 27.98%. Similarly, the 182-day bill received GH₵4.4 billion in bids, with GH₵3.8 billion accepted, causing its yield to decline by 21 basis points to 28.68%. Notably, no 364-day bills were issued in that round.

 Outlook for Upcoming Auction

The next auction, Tender 1943, is set for February 21, 2025, with a target issuance of GH₵7,729 million across all three Treasury bill tenors. Market participants will be closely monitoring the results for insights into interest rate movements and investor confidence.