Government raises gh¢120.2bn from treasury bill market in first four months of 2026

The Government of Ghana mobilised approximately GH¢120.2 billion from the Treasury bill market between January and April 2026, according to data from the Bank of Ghana.

The amount raised came against a total GH¢181.5 billion tendered by investors during the period, reflecting what analysts describe as a cautious borrowing approach aimed at balancing government financing needs with efforts to contain borrowing costs.

Data from the central bank showed that Treasury bill activity moved through two distinct phases during the first four months of the year.

From January to mid-March, investor appetite remained exceptionally strong, resulting in 11 consecutive oversubscribed auctions. Demand reached its peak in mid-February when investors submitted bids worth GH¢22.67 billion against a government target of GH¢6.42 billion.

The strong demand was largely driven by favourable yields and high liquidity within the financial system during the early part of the year.

However, investor interest began to weaken from late March through April as Treasury bill yields declined sharply.

The market subsequently recorded six straight undersubscribed auctions, highlighting reduced investor enthusiasm for the instruments at lower interest rates.

One of the most significant shortfalls occurred during Tender 2002, where total bids of GH¢5.31 billion fell nearly 30 per cent below the government’s target of GH¢7.57 billion.

Investor behaviour also shifted across the various Treasury bill tenors as returns declined.

At the beginning of the year, the 364-day bill attracted strong investor interest, recording GH¢15.18 billion in bids in January alone.

By the end of April, however, demand for the same instrument had fallen sharply to approximately GH¢3.12 billion as investors became increasingly reluctant to lock in funds for longer periods at lower yields.

During the final auction in April, the 91-day bill emerged as the most attractive instrument, drawing GH¢2.8 billion in bids, with GH¢2.7 billion accepted by the Treasury.

The 182-day bill received GH¢717.6 million in bids, of which GH¢664.4 million was accepted, while the 364-day bill attracted GH¢960.1 million, with only GH¢522.5 million accepted.

The changing investor behaviour was largely influenced by the sharp fall in Treasury bill rates during the period.

At the start of 2026, the 91-day bill offered an average yield of 11.12 per cent, while the 364-day bill stood at 12.93 per cent.

By the end of April, those yields had dropped significantly. The 91-day bill declined to 4.92 per cent, while the 364-day bill eased to 10.20 per cent.

Analysts say the sharp compression in yields reduced the attractiveness of Treasury bills, especially for investors seeking higher returns on longer-term instruments.

Market analysts believe the government took advantage of strong liquidity conditions during the first quarter to front-load borrowing at relatively higher rates before yields declined.

As demand softened later in the period, the Treasury appeared to adopt a more disciplined borrowing strategy by rejecting sizeable portions of bids submitted at auctions.

The large bid rejections recorded in April are being interpreted as part of a broader cost-management approach aimed at lowering government borrowing expenses rather than aggressively meeting auction targets in full.

Economists say the trend could signal government confidence in improving fiscal conditions and a deliberate effort to reduce the cost of domestic debt servicing amid ongoing macroeconomic reforms.