The Government of Ghana has made a strong start to 2025, recording a remarkable oversubscription of GHC 1 billion in its first Treasury Bills (T-Bills) auction of the year.

Tender 1936, held on January 3, 2025, aimed to raise GHC 4.326 billion across three tenors—91-day, 182-day, and 364-day T-Bills. The total bids tendered, however, reached GHC 5.392 billion, with GHC 5.372 billion accepted by the government.

Of the GHC 3.539 billion and GHC 617.4 million worth of 91-day bills respectively tendered, government accepted GHC 3.531 billion and GHC 604.39 million worth of bills respectively, while accepted all GHC 1.235 billion worth of 364-day bills tendered.

In spite of a resurgence in appetite for treasuries amidst an ongoing legal tussle on the legality of its issuance without recourse to parliament, the cost of government borrowing keeps soaring. The 91-day bill at the close of auction sold for an average of 28.19%, while the 182 and 364 day bills sold at an average of 28.92% and 30.15%.

The latest action figures also reflect an increase in demand as government in the final auction of 2024 (Tender 1935), the government raised GHC 4.645 billion, exceeding its target by under half a billion Ghana Cedis.

The recent increased demand for the 364-day bills could also be interpreted as a reduction in uncertainty in the market that especially characterized the lead up to the country’s general polls in December.

Government has set an ambitious target of GHC 5.198 billion for the next auction indicating the government’s continued reliance on short-term instruments to manage its financing needs.

Attached is a summary of auction 1936: