Ghana rejects GH₵2.9 billion in Treasury bill bids, interest rates drop

The government of Ghana has turned down GH₵2.9 billion worth of Treasury bill bids in its latest auction, despite strong investor interest that saw total bids reach GH₵10.6 billion. The move aligns with the government’s strategy to control borrowing costs and stabilize interest rates.

Initially targeting GH₵7.3 billion, the Treasury accepted GH₵7.7 billion, slightly exceeding its goal. However, nearly GH₵3 billion in higher-priced bids were rejected to manage debt servicing costs. The 91-day Treasury bill attracted the highest demand with GH₵6.1 billion in bids, but only GH₵3.9 billion was accepted. The yield on the 91-day bill fell by 43 basis points to 27.98 percent, while the 182-day bill’s yield dropped by 21 basis points to 28.68 percent. No 364-day bills were issued in this auction.

The decline in interest rates marks a continuation of recent trends, suggesting investor confidence in Ghana’s economic management. With another auction scheduled later this month and a raised target of GH₵8 billion, market watchers anticipate further insights into the government’s fiscal approach and the stability of yields.