- Treasury Bill Demand Surges to GH¢11.64bn as Government Accepts GH¢9.42bn
Investor demand for Ghanaian Treasury bills remained strong at the latest auction, with total bids reaching GH¢11.64 billion against a government target of GH¢6.22 billion, underlining continued appetite for short-term sovereign securities.
The Bank of Ghana’s Tender 2019, held on August 7, 2026 for securities and issued on August 10, attracted bids of GH¢3.70 billion for the 91-day bill, GH¢1.91 billion for the 182-day bill and GH¢6.02 billion for the 364-day bill. The government accepted a combined GH¢9.42 billion, substantially above its announced target.
The 364-day bill was the dominant instrument, accounting for just over half of all bids received. Government accepted GH¢5.86 billion from the GH¢6.02 billion tendered, showing especially strong demand for the longer of the three short-term maturities.
Demand for the 91-day bill was also substantial, with GH¢3.70 billion tendered and GH¢2.36 billion accepted. The 182-day bill attracted GH¢1.91 billion, of which GH¢1.19 billion was accepted.
The strong subscription means total bids were about 87.18% above the government’s target, while accepted bids exceeded the target by about 51.49%. That suggests the Treasury took advantage of favourable demand conditions to raise considerably more than initially planned.
The latest auction also provides a clear picture of the yield structure investors are accepting across the curve. The weighted average interest rate on the 91-day bill stood at 5.63%, while the 182-day bill cleared at 7.53% and the 364-day bill at 12.99%.
The difference between the three maturities is significant. Investors are accepting relatively low single-digit returns at the very short end of the curve, while demanding materially higher compensation to lock funds away for a full year.
That spread reflects the balance between liquidity preference and duration risk. A 91-day security offers investors quicker access to capital and less exposure to future changes in inflation or monetary policy, while the 364-day bill requires a longer commitment and therefore carries a higher yield.
The bid ranges also show how investors positioned themselves. The 91-day bill attracted bids between 5.43% and 5.70%, while the 182-day bill drew bids between 7.22% and 8.63%. The 364-day security attracted the widest and highest range, between 11.39% and 12% on a discount-rate basis.
For the Treasury, the outcome is positive from a funding perspective. Strong demand gives government greater flexibility to meet short-term financing needs without having to offer sharply higher rates to attract investors.
The auction also comes against a broader backdrop of declining short-term interest rates compared with the much higher yields seen during Ghana’s period of severe inflation and fiscal stress. As macroeconomic conditions stabilise, investors are being asked to accept lower nominal returns on government paper.
That makes the strength of demand especially noteworthy. Even with 91-day rates close to 5.63%, investors were still willing to tender GH¢3.70 billion for the instrument.
The 364-day bill, however, remains particularly attractive because it offers a yield close to 13.00%, providing investors with a substantially higher return while still keeping exposure within a one-year maturity horizon.
The latest result also compares favourably with the previous auction. Tender 2018, held on July 31, recorded total bids of GH¢10.51 billion and accepted sales of GH¢8.65 billion.
That means bids increased by roughly 10.76% week-on-week, while the amount accepted rose by about 8.88%. The figures point to sustained rather than one-off demand for Treasury securities.
The government has set a lower target of GH¢5.99 billion for Tender 2020, suggesting authorities may not need to absorb the same volume at the next auction even if investor demand remains strong.
For the market, the broader question is how long this combination of strong demand and relatively low short-term yields can persist. Much will depend on inflation, liquidity conditions, monetary policy expectations and the government’s financing requirements.
If inflation remains contained and the Bank of Ghana maintains a relatively accommodative stance, short-term yields could remain under downward pressure. Investors may then increasingly look towards longer-dated bills and bonds for better returns.
If that shift accelerates, the composition of government borrowing could gradually change. Stronger demand at the longer end would give the Treasury more room to extend maturities rather than relying excessively on repeated short-term refinancing.
For now, however, the latest auction points to a government funding market that remains highly liquid. Investors offered nearly GH¢12 billion against a target just above GH¢6 billion, allowing the Treasury to raise more than GH¢9 billion without materially disrupting yields.
The standout signal is the 364-day bill. With more than GH¢6 billion tendered and almost all of it accepted, investors appear increasingly willing to lock funds away for a full year in exchange for yields just below 13%.
That could become an important indicator of confidence in Ghana’s near-term macroeconomic outlook. If investors continue to favour longer Treasury maturities even as yields remain contained, it would suggest that expectations around inflation, fiscal stability and interest rates are becoming more firmly anchored.
