The Bank of Ghana reports that the government mobilised approximately GH¢120.2 billion from the Treasury bill market between January and April 2026, highlighting a disciplined borrowing strategy aimed at meeting financing needs while reducing interest costs.
This amount was raised from total investor bids of GH¢181.5 billion, reflecting robust market interest despite the government accepting significantly less than the amount offered.
The strong appetite for short-term securities underscores continued investor confidence in Ghana’s domestic debt market.
According to Bank of Ghana data, the Treasury bill market experienced two distinct phases during the first four months of the year.
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From January to mid-March, the market recorded 11 consecutive oversubscribed auctions, driven by abundant liquidity and strong investor demand. The peak came in mid-February, when bids reached GH¢22.67 billion against a target of just GH¢6.42 billion.
This surge in participation enabled the government to front-load borrowing and secure substantial financing under favourable market conditions.
From late March through April, investor demand moderated as Treasury bill yields declined sharply.
The market posted six straight undersubscribed auctions, with Tender 2002 among the most notable. During that auction, bids of GH¢5.31 billion fell nearly 30 percent short of the GH¢7.57 billion target.
The reduced demand suggests that investors became less enthusiastic as returns on government securities compressed.
At the beginning of the year, investors showed strong interest in longer-dated securities, particularly the 364-day Treasury bill, which attracted GH¢15.18 billion in bids in January.
By the end of April, however, bids for the same tenor had dropped significantly to around GH¢3.12 billion, indicating reduced willingness to lock in funds at lower yields.
In the final auction of April:
- The 91-day bill attracted GH¢2.8 billion, with GH¢2.7 billion accepted.
- The 182-day bill received GH¢717.6 million, of which GH¢664.4 million was accepted.
- The 364-day bill recorded GH¢960.1 million, with only GH¢522.5 million accepted.
Treasury Bill Rates Decline Sharply
The decline in yields played a central role in reshaping investor behaviour.
At the start of 2026:
- The 91-day Treasury bill yielded 11.12%
- The 364-day Treasury bill yielded 12.93%
By the end of April:
- The 91-day rate had fallen to 4.92%
- The 364-day rate had eased to 10.20%
This sharp drop reduced the attractiveness of Treasury bills, particularly for investors seeking higher returns.
The government appears to have taken advantage of strong first-quarter liquidity to secure funding early at relatively attractive rates.
As yields declined and investor interest softened, the Treasury adopted a more selective issuance approach, often rejecting substantial portions of submitted bids.
The large bid rejections in April signal a deliberate cost-management strategy, with the government prioritising affordable financing over fully meeting auction targets.
The developments suggest that the government is carefully balancing its financing requirements with the need to minimise debt servicing costs in a changing market environment.
With yields trending downward and market conditions evolving, Treasury bill issuance is expected to remain a critical component of Ghana’s short-term financing strategy.