The Ghana T Bills market recorded another sharp shift in favour of lower yields after the government rejected GH¢6.4 billion of the GH¢11.3 billion in bids submitted at the latest Treasury bill auction.
The rejection represents the highest level of bid rejections since February 23, 2026, despite strong investor demand for government securities.
Government had targeted GH¢5.99 billion but raised only GH¢4.9 billion. The shortfall was covered partly through previous funding surpluses, allowing the Treasury to refinance GH¢5.91 billion in maturing securities.
The outcome reduced the outstanding Treasury bill stock by about GH¢1 billion, marking the first net decline in T Bill debt since July 6.
Yields continue to slide
The auction strengthened the rally at the short end of Ghana’s yield curve, with rates falling by an average of 90 basis points.
It was the sixth consecutive auction driven decline in yields.
The 364 day bill recorded the sharpest movement, with its stop rate dropping 49 basis points from 12.99% to 12.50%.
Investor appetite remained strong, particularly for securities offering higher returns. The upper band of submitted bids increased by 199 basis points.
Government, however, continued to push pricing lower, cutting the maximum accepted rate by 83 basis points.
The move suggests the Treasury remains confident that liquidity conditions can support cheaper borrowing.
BoG liquidity injection adds support
Liquidity conditions were also helped by the Bank of Ghana’s Open Market Operations.
The central bank absorbed GH¢23 billion against maturities of GH¢28 billion, effectively releasing about GH¢5 billion into the financial system.
That liquidity injection is likely to have supported the heavy demand seen at the Treasury bill auction and helped government secure funding at lower rates.
The market could receive another boost on August 18, when an estimated GH¢10 billion in coupon payments is expected to enter the financial system.
With liquidity still relatively strong, falling interest rates and sustained investor appetite are expected to keep the rally going across both the primary and secondary fixed income markets.
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