The Government of Ghana raised approximately GHS120.2 billion from the Treasury bill market between January and April 2026, according to data from the Bank of Ghana.
The amount accepted by the Treasury came against total investor bids of GHS181.5 billion, highlighting strong liquidity conditions in the domestic money market during the first quarter of the year.
The borrowing activity reflects what analysts describe as a cautious and measured financing strategy by the government, aimed at meeting short-term funding needs while also managing borrowing costs amid changing market conditions.
Treasury bill auctions experienced robust investor demand from January through mid-March, with the market recording 11 consecutive oversubscribed auctions.
The strongest demand was recorded in mid-February when investors submitted bids worth GHS22.67 billion against a Treasury target of GHS6.42 billion, underscoring strong appetite for government securities at the time.
However, the trend shifted from late March into April as yields declined sharply, reducing the attractiveness of short-term government instruments.
During this period, the market recorded six straight undersubscribed auctions. One of the weakest performances came during Tender 2002, where investor bids of GHS5.31 billion fell significantly short of the government’s target of GHS7.57 billion.
Investors Shift Preferences Across Tenors
At the beginning of the year, the 364-day bill attracted substantial interest, receiving bids of about GHS15.18 billion in January as investors sought higher long-term returns.
By the end of April, demand for the same instrument had dropped sharply to around GHS3.12 billion, reflecting growing reluctance among investors to lock in funds at lower yields.
In the final auction of April, the 91-day bill emerged as the most attractive instrument, drawing bids of GHS2.8 billion, with GHS2.7 billion accepted by the Treasury.
The 182-day bill recorded bids of GHS717.6 million, of which GHS664.4 million was accepted. Meanwhile, the 364-day bill attracted GHS960.1 million in bids, but only GHS522.5 million was accepted.
Treasury Bill Yields Decline Sharply
The decline in investor demand coincided with a sharp fall in Treasury bill yields over the four-month period.
The average yield on the 91-day bill dropped from 11.12 percent at the start of the year to 4.92 percent by the end of April.
Similarly, the yield on the 364-day bill eased from 12.93 percent to 10.20 percent over the same period.
Market observers say the decline in rates reduced the relative attractiveness of Treasury bills, particularly for investors seeking higher returns in longer-dated instruments.
Government Tightens Borrowing Strategy
The data suggests the government took advantage of strong liquidity conditions earlier in the year to front-load domestic borrowing while rates were relatively higher.
As market demand weakened and yields declined, the Treasury appeared to adopt a more disciplined borrowing approach by accepting fewer bids and rejecting portions of submitted offers to contain borrowing costs.
