Government Raises GHS120bn from Treasury Bills in First Four Months of 2026

Between January and April 2026, the government secured about GHS120.2 billion from the Treasury bill market, compared to the GHS181.5 billion submitted by investors. The figures suggest a cautious borrowing approach aimed at meeting funding requirements while also limiting borrowing costs as market liquidity conditions changed.

Investor Appetite Shifts

According to data from the Bank of Ghana, investor participation followed two distinct trends during the period. From January through mid-March, auctions were consistently oversubscribed, with investors showing strong interest in government securities. The highest demand came in mid-February when bids reached GHS22.67 billion against a target of GHS6.42 billion.

However, from late March into April, investor enthusiasm declined as Treasury bill yields dropped significantly. This resulted in six straight undersubscribed auctions. One of the weakest performances occurred during Tender 2002, where bids totaling GHS5.31 billion fell well below the government’s GHS7.57 billion target.

Demand Across Different Maturities

Investor interest also shifted among the various Treasury bill tenors as returns decreased. Earlier in the year, longer-term securities attracted stronger demand, with the 364-day bill recording GHS15.18 billion in bids in January.

By April, interest in the same instrument had weakened considerably, with bids dropping to roughly GHS3.12 billion as investors became less interested in locking in funds at reduced yields.

In the final auction of April, most investor demand focused on the 91-day bill, which received GHS2.8 billion in bids, with GHS2.7 billion accepted. The 182-day bill attracted GHS717.6 million, of which GHS664.4 million was accepted, while the 364-day bill recorded GHS960.1 million in bids, with only GHS522.5 million accepted.

Declining Yields Influence Market Activity

The fall in interest rates played a major role in changing investor behavior. At the beginning of the year, the 91-day Treasury bill yielded an average of 11.12%, while the 364-day instrument offered 12.93%.

By the end of April, those rates had dropped sharply. The 91-day bill declined to 4.92%, while the 364-day bill eased to 10.20%. The lower returns reduced the attractiveness of Treasury bills, especially during the latter part of the period.

Government’s Borrowing Approach

The figures suggest the government took advantage of strong liquidity conditions early in the year to raise funds at comparatively higher rates. As yields fell and investor demand weakened, authorities became more selective in accepting bids, often rejecting portions of submitted offers.

The large volume of rejected bids in April highlights a strategy focused on reducing borrowing costs rather than fully meeting auction targets.

Overall, the Treasury appears to have carefully balanced its financing needs with efforts to manage interest expenses amid changing market conditions.