The Government mobilised approximately GHS120.2bn from the Treasury bill market between January and April 2026. This is against the GH¢181.5 billion offered by investors.
This reflects a measured borrowing strategy, with the Treasury balancing financing needs against the need to contain borrowing costs amid evolving liquidity conditions.
Investor Demand Trends
A look at the data from the Bank of Ghana shows market activity moved in two clear phases. From January to mid-March, strong investor demand drove 11 consecutive oversubscribed auctions. Demand peaked in mid-February, with total bids of GHS22.67bn against a target of GHS6.42bn.
However, demand weakened from late March through April as yields compressed sharply. The market recorded six consecutive undersubscribed auctions, most notably Tender 2002, where bids tendered of GHS5.31bn fell short of the GHS7.57bn target by nearly 30%.
Performance Across Tenors
Investor preferences shifted across the curve as yields declined. Earlier in the year, demand was stronger at the longer end, with the 364-day bill attracting GHS15.18billion in bids in January.
By the end of April, however, bids for the same tenor had fallen sharply to about GHS3.12bn, as investors became less willing to extend duration at lower yields.
In the final auction of April, demand was concentrated in the 91-day bill, which attracted GHS2.8billion in bids, of which GHS2.7 billion was accepted. The 182-day bill recorded GHS717.6million in bids, of which GHS664.4million was accepted, while the 364-day bill attracted GHS960.1million, of which only GHS522.5 million was accepted.
Interest Rates and Yield Movements
The sharp decline in yields was a key driver of the shift in demand. At the start of the year, the 91-day bill offered an average yield of 11.12 percent, while the 364-day bill stood at 12.93 percent.
By the end of April, yields had fallen markedly, with the 91-day rate dropping to 4.92 percent and the 364-day bill easing to 10.20 percent. This yield compression reduced the relative attractiveness of T-bills, particularly in the latter part of the quarter.
Market Strategy and Outlook
The data indicates that the government leveraged strong liquidity conditions in the first quarter to front-load borrowing at relatively higher rates. As yields declined and demand softened, the Treasury adopted a more disciplined issuance strategy, frequently accepting bids below the total bids submitted.
The sizeable bid rejections in April point to a clear cost-management strategy, with the Treasury prioritising lower borrowing costs over meeting auction targets in full.
Overall, the developments point to a deliberate balancing of financing needs against interest rate considerations within a shifting market environment.
