Between January and April 2026, the Government raised about GHS120.2 billion from the Treasury bill market, out of the GHS181.5 billion submitted by investors.
The figures reflect a cautious borrowing approach by the Treasury, which sought to balance its financing needs with efforts to reduce borrowing costs amid changing market liquidity conditions.
Data from the Bank of Ghana shows that the market moved through two distinct phases during the period.
From January to mid-March, investor demand remained strong, resulting in 11 consecutive oversubscribed auctions.
Demand reached its peak in mid-February, when investors submitted GHS22.67 billion in bids against a target of GHS6.42 billion.
However, from late March through April, demand weakened significantly as Treasury bill yields declined sharply.
This led to six consecutive undersubscribed auctions.
The most notable was Tender 2002, where bids worth GHS5.31 billion fell almost 30% short of the GHS7.57 billion target.
Investor appetite also shifted across the maturity curve as yields dropped.
Earlier in the year, longer-term instruments attracted stronger interest, with the 364-day bill recording GHS15.18 billion in bids in January.
By the end of April, bids for the same instrument had fallen sharply to about GHS3.12 billion, as investors became less willing to commit funds for longer periods at lower returns.
In the final auction of April, demand was concentrated mainly in the 91-day bill, which attracted GHS2.8 billion in bids, with GHS2.7 billion accepted.
The 182-day bill received GHS717.6 million in bids, 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.
The sharp fall in yields played a major role in changing investor behaviour. At the beginning of the year, the 91-day bill offered an average yield of 11.12%, while the 364-day bill stood at 12.93%.
By the end of April, yields had declined significantly, with the 91-day bill dropping to 4.92% and the 364-day bill easing to 10.20%.
As returns fell, Treasury bills became less attractive to investors, especially during the latter part of the period.
The data suggests that the government took advantage of strong liquidity conditions in the first quarter to secure borrowing at relatively higher rates earlier in the year.
As yields declined and investor demand softened, the Treasury adopted a more disciplined issuance strategy, often accepting fewer bids than the total amount submitted.
The large bid rejections recorded in April indicate a deliberate effort to manage borrowing costs, with the Treasury prioritising lower interest expenses over fully meeting auction targets.
Overall, the developments highlight the government’s attempt to balance its financing requirements with the need to manage interest costs in a changing market environment.
