Gov’t Raises GH¢120.2bn from T-Bills in 2026
Government mobilised approximately GH¢120.2 billion from the Treasury bill market between January and April 2026, out of total investor bids worth GH¢181.5 billion, as changing market conditions and falling yields reshaped investor appetite in the first four months of the year.
Data from the Bank of Ghana showed that the Treasury market experienced two distinct phases during the period. The first quarter saw exceptionally strong investor demand, with the government recording 11 consecutive oversubscribed auctions between January and mid-March.
Investor appetite peaked in mid-February when total bids surged to GH¢22.67 billion against a target of GH¢6.42 billion, reflecting strong liquidity conditions and heightened interest in short-term government securities.
However, market sentiment began to shift from late March into April as Treasury bill yields declined sharply. The market subsequently recorded six straight undersubscribed auctions, signalling weakening investor appetite at lower rates.
One of the clearest indications of this slowdown emerged during Tender 2002, where investor bids reached GH¢5.31 billion, falling nearly 30 per cent below the government’s GH¢7.57 billion target.
Analysts say the developments reflect a changing interest rate environment, with investors becoming increasingly cautious as returns compressed across the yield curve.
Investor preference also shifted noticeably during the period. Earlier in the year, demand was concentrated in longer-dated instruments, particularly the 364-day Treasury bill, which attracted GH¢15.18 billion in bids in January alone.
By April, subscriptions to the same instrument had dropped significantly to GH¢3.12 billion as investors became less willing to lock in funds for longer periods at lower yields.
In contrast, demand in the final April auction tilted heavily toward shorter-tenor instruments, with the 91-day bill accounting for the largest share of subscriptions.
The decline in yields remained one of the major drivers behind the evolving market dynamics. The 91-day Treasury bill rate declined sharply 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.
The falling rates reduced the attractiveness of Treasury securities, particularly for institutional investors seeking higher real returns in a moderating inflation environment.
Despite the softer demand conditions in April, the government appears to have strategically front-loaded a substantial portion of its borrowing programme during the first quarter, when market demand remained strong and financing conditions were more favourable.
The higher bid rejections recorded in recent auctions also suggest that authorities are prioritising cost management and lower borrowing costs rather than accepting all investor bids at prevailing rates.
The evolving Treasury bill market conditions come amid broader efforts by government and monetary authorities to maintain macroeconomic stability, lower inflation and reduce interest rate pressures within the economy.
