The government mobilised about GH¢120.2 billion from the Treasury bill market between January and April 2026, against total investor bids of GH¢181.5 billion, reflecting a cautious borrowing approach aimed at balancing financing needs with rising cost pressures.
Data from the Bank of Ghana shows a divided market performance over the period. Between January and mid-March, investor appetite was strong, resulting in 11 consecutive oversubscribed auctions.
Demand peaked in mid-February when bids hit GH¢22.67 billion against a target of GH¢6.42 billion, signalling robust short-term liquidity in the system.
However, sentiment shifted from late March into April as yields declined sharply. The market then recorded six straight undersubscribed auctions, including Tender 2002, where bids of GH¢5.31 billion fell about 30 per cent short of a GH¢7.57 billion target, reflecting weakening demand at lower returns.
Investor preference also moved along the yield curve during the period. Earlier in the year, longer-dated instruments attracted stronger interest, with the 364-day bill alone recording GH¢15.18 billion in January bids.
By April, that figure had dropped significantly to GH¢3.12 billion, as investors became less inclined to lock in funds at reduced yields. In the final April auction, demand shifted heavily to the short end, with the 91-day bill dominating subscriptions.
The decline in yields was a major factor behind these shifts. The 91-day bill rate fell from 11.12 per cent in January to 4.92 per cent by April, while the 364-day bill eased from 12.93 per cent to 10.20 per cent over the same period. This compression reduced the attractiveness of T-bills, especially for longer maturities.
Overall, the government appears to have front-loaded borrowing in the first quarter when demand and rates were favourable, before tightening issuance in response to softer market conditions.
Higher bid rejections in April suggest a deliberate strategy of prioritising cost efficiency over full auction subscription, as authorities adjusted to evolving liquidity and interest rate dynamics.
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