Ghana Front-Loads Borrowing as Treasury Bill Sales Hit GH¢120bn in Four Months
Ghana’s government raised approximately GH¢120.2bn from the domestic Treasury bill market during the first four months of 2026, as authorities took advantage of strong liquidity conditions early in the year while attempting to contain borrowing costs amid falling interest rates.
The amount accepted by the Treasury came against total investor bids of roughly GH¢181.5bn, highlighting substantial demand for short-term government securities despite changing yield conditions across the period. The data points to a deliberate financing strategy in which authorities increasingly rejected higher-cost bids as market rates declined.
According to auction data from the Bank of Ghana, the market moved through two distinct phases between January and April. From the beginning of the year through mid-March, Treasury bill auctions were heavily oversubscribed, with investors chasing attractive yields and relatively low-risk government instruments during a period of improving macroeconomic sentiment. Demand peaked in mid-February when bids reached GH¢22.67bn against a target of GH¢6.42bn.
But momentum weakened sharply from late March into April as yields compressed. The market subsequently recorded six consecutive undersubscribed auctions, signalling growing investor caution as returns declined. One of the weakest auctions came under Tender 2002, where bids of GH¢5.31bn fell significantly short of the government’s GH¢7.57bn target.
The shift in investor appetite was particularly visible across longer-duration securities. Earlier in the year, the 364-day bill attracted strong interest, recording more than GH¢15bn in bids in January. By the end of April, demand for the same tenor had dropped to about GH¢3.12bn as investors became less willing to lock funds into longer maturities at lower yields.
In contrast, shorter-dated securities regained favour. During the final Treasury bill auction in April, the 91-day bill drew the strongest demand, attracting GH¢2.8bn in bids, of which nearly GH¢2.7bn was accepted.
The yield decline has been significant. At the start of 2026, the 91-day Treasury bill yielded around 11.12 per cent while the 364-day instrument stood at 12.93 per cent. By the end of April, the 91-day yield had dropped to 4.92 per cent, with the 364-day bill easing to 10.20 per cent. The sharp compression reduced the relative attractiveness of Treasury securities, particularly for investors seeking higher real returns.
Analysts say the government appears to have strategically front-loaded borrowing during the first quarter when investor demand and rates were more favourable. As liquidity conditions evolved and rates declined, authorities adopted a more disciplined acceptance strategy aimed at lowering debt-servicing costs rather than fully meeting issuance targets.
The Treasury bill market has become increasingly important for Ghana’s fiscal operations following the country’s domestic debt restructuring programme, which reshaped investor participation across longer-term bond markets. Short-term government securities have since emerged as a key funding source while confidence gradually rebuilds across the broader domestic debt market.
