- T-Bills Auction Undersubscribed as Yields Hold Below 13.00%
The Government of Ghana accepted GH¢3.16 billion from its latest Treasury bills auction, falling short of its GH¢3.37 billion target as investor demand moderated sharply from the previous week.
Results of Tender 2014, held on July 2, 2026, showed that bids tendered across the 91-day, 182-day and 364-day bills amounted to GH¢4.16 billion, with the government accepting GH¢3.16 billion. The securities will be issued on July 6, 2026.
The accepted amount represented 93.80% of the auction target of GH¢3.37 billion, leaving a shortfall of about GH¢207.73 million. The outcome points to a more cautious auction environment, especially after the previous tender attracted GH¢7.37 billion in bids, of which GH¢6.01 billion was sold.
The 91-day bill remained the main funding instrument, attracting GH¢1.69 billion in bids. Government accepted GH¢1.63 billion, making it the largest contributor to total accepted bids.
The short-dated instrument cleared at a weighted average discount rate of 5.7880%, equivalent to an interest rate of 5.8730%. Accepted bid rates for the 91-day bill ranged from 5.2307% to 5.9113% on a discount-rate basis, while the interest-rate range was 5.3000% to 6.0000%.
The 182-day bill recorded GH¢618.90 million in bids, with GH¢435.82 million accepted. Its weighted average discount rate was 7.4963%, while the equivalent interest rate stood at 7.7883%. Accepted discount rates ranged from 7.2289% to 7.6000%, with allotted interest rates ranging from 7.5000% to 7.9002%.
For the 364-day bill, investors tendered GH¢1.86 billion, but the government accepted GH¢1.10 billion. The one-year bill cleared at a weighted average discount rate of 11.4492%, equivalent to an interest rate of 12.9295%. Accepted discount rates ranged from 11.0000% to 11.5044%, while allotted interest rates ranged from 12.3596% to 13.0000%.
The auction results suggest that the government continued to manage funding costs by rejecting a portion of bids, particularly at the longer end of the Treasury bills curve. Although total bids exceeded the auction target, the amount accepted fell below target, indicating that not all demand came at rates the Treasury was willing to accommodate.
The 364-day bill attracted the highest amount tendered among the three tenors, but the government accepted only 59.07% of bids submitted for that instrument. By contrast, the 91-day bill recorded a much higher acceptance rate, with government taking up 96.66% of bids tendered.
This pattern suggests continued preference by the issuer for shorter-term funding while keeping a lid on accepted rates, especially as the Treasury seeks to balance domestic financing needs with debt-service sustainability.
The sharp decline from the previous auction is also notable. Tender 2013, held on June 26, 2026, recorded GH¢7.37 billion in total bids and GH¢6.01 billion in sales for the 91-day, 182-day and 364-day bills. The latest auction therefore saw accepted bids drop by GH¢2.85 billion week-on-week.
Market participants are likely to interpret the outcome as a sign of changing liquidity conditions after heavy participation in the previous auction. It may also reflect investor positioning ahead of the Bank of Ghana’s next Monetary Policy Committee meetings later in July.
The central bank has scheduled the 131st MPC meetings for July 20 to July 22, 2026, with markets expected to watch closely for guidance on inflation, liquidity and the future path of interest rates.
For investors, the auction confirms that Treasury bill rates remain relatively contained, with the 91-day bill below 6.00%, the 182-day bill below 8.00%, and the 364-day bill below 13.00% on an interest-rate basis.
Government is targeting GH¢5.67 billion at the next tender, covering the 91-day, 182-day and 364-day bills.
That higher target will test the depth of market liquidity and investor appetite, particularly after the latest auction fell short of target despite more than GH¢4.00 billion in bids.
The next sale will therefore be important in determining whether the July 2 outcome was a temporary moderation in demand or the beginning of a more cautious phase in the short-term government securities market.
