- Government Misses T-Bill Target as Auction Raises GH¢3.93bn
Government raised GH¢3.93 billion from the latest Treasury bill auction, falling short of its GH¢4.49 billion target, as investor demand eased across the 91-day, 182-day and 364-day bills.
According to the Bank of Ghana’s auction results for Tender 2008, held on May 22, 2026, total bids tendered amounted to GH¢4.22 billion, while government accepted GH¢3.93 billion across the three short-term instruments. The securities are scheduled to be issued on May 25, 2026.
The 91-day bill continued to dominate investor demand, attracting GH¢2.53 billion in bids, of which GH¢2.51 billion was accepted. The 182-day bill received GH¢877.72 million in bids, with GH¢723.50 million accepted, while the 364-day bill attracted GH¢817.12 million, of which GH¢699.62 million was accepted.
Weighted average yields remained in single digits for the shorter maturities, reinforcing the sharp easing in short-term interest rates as inflation pressures continue to moderate.
The 91-day bill cleared at a weighted average discount rate of 4.8546 per cent, equivalent to an interest rate of 4.9143 per cent. The 182-day bill cleared at a discount rate of 6.8012 per cent, with an interest rate of 7.0406 per cent, while the 364-day bill recorded a discount rate of 9.3970 per cent, translating into an interest rate of 10.3716 per cent.
The result points to a market where yields remain compressed but where investor appetite may be becoming more selective at the prevailing rates. While the government accepted most of the bids submitted, the auction still undershot the target by about GH¢554.88 million, suggesting that demand was not strong enough to fully meet the planned financing requirement.
Compared with the previous auction, the fall in market appetite was more pronounced. Tender 2007, held on May 15, 2026, saw total bids of GH¢5.80 billion, with the government selling GH¢5.48 billion. That means the latest auction recorded a decline of about GH¢1.55 billion in accepted bids compared with the previous week.
The Bank of Ghana has set a higher target of GH¢5.89 billion for Tender 2009, covering the 91-day, 182-day and 364-day bills. That target will test whether the market can absorb a larger short-term borrowing requirement at current yield levels. For government, the result presents a delicate balance. Lower yields help reduce domestic interest costs and signal improving macroeconomic confidence. But weaker subscriptions against the target could complicate short-term cash management, especially if investors begin to demand higher compensation for rolling over government paper.
The next auction will therefore be closely watched. If demand strengthens, it would suggest that investors remain comfortable with lower yields. If the target is missed again, it could raise questions about how much further Treasury bill rates can fall without weakening appetite for government paper.
