Interest rates on treasury bills have climbed to their highest levels since March 2024, highlighting the ongoing difficulties the government is facing in the treasury market.

In last Friday’s auction (Tender 1925), the government managed to exceed its target for the second week in a row, but only by a slim 3.97%. This is an improvement from the 1.08% oversubscription seen in Tender 1924. Overall, they raised about GH¢4.195 billion, surpassing their goal of GH¢4.035 billion.

During this auction, the government issued GH¢3.520 billion in 191-day bills, along with GH¢545.83 million in 182-day bills and GH¢128.52 million in 364-day bills.

Despite a noticeable drop in inflation and a recent reduction in the policy rate, the government’s struggle to meet its targets has come at a cost.

Over the weekend, the average interest rates for the 91-day, 183-day, and 364-day bills were 25.94%, 27.03%, and 28.74%, respectively—rates we haven’t seen since the auction on March 25th.

With these ongoing challenges, the government is once again lowering its target for the upcoming auction, now hoping to raise GH¢3.980 billion in Tender 1926.