Government exceeded its Treasury bills target in the latest domestic debt auction after raising GH¢5.48 billion, underscoring sustained investor confidence in Ghana’s short-term securities despite moderating interest rates.
According to results released by the Bank of Ghana for Tender 2007 held on May 15, 2026, total bids submitted for the 91-day, 182-day and 364-day Treasury bills reached GH¢5.80 billion, well above the government’s target of GH¢4.30 billion.
Out of the total bids received, government accepted GH¢5.48 billion, representing an oversubscription of approximately GH¢1.18 billion above the initial target.
The outcome highlights the continued attractiveness of Treasury bills to investors seeking low-risk instruments in an environment of easing inflation and improving liquidity conditions.
91-Day Bill Dominates Investor Demand
The 91-day Treasury bill remained the most preferred instrument in the auction, accounting for the bulk of investor demand.
The short-term bill attracted GH¢3.83 billion in bids, with government accepting GH¢3.65 billion. The weighted average discount rate for the instrument stood at 4.8577%, while the equivalent interest rate settled at 4.9174%.
The 182-day bill received bids worth GH¢709.83 million, out of which GH¢671.72 million was accepted. Its weighted average discount rate came in at 6.8017%, with an equivalent interest rate of 7.0411%.
For the 364-day bill, investors tendered GH¢1.26 billion, while government accepted GH¢1.15 billion. The one-year instrument recorded a weighted average discount rate of 9.4086% and an equivalent interest rate of 10.3857%.
Market analysts say the dominance of the 91-day bill reflects continued investor preference for shorter-tenor securities amid expectations that interest rates could continue to soften in the coming months.
“The auction outcome shows that liquidity remains concentrated at the short end of the yield curve,” the report noted, adding that the 91-day bill accounted for nearly two-thirds of total accepted bids.
Declining Yields Reflect Easing Monetary Conditions
The latest Treasury bills auction also highlights how sharply money market conditions have adjusted following Ghana’s recent disinflation trend and a more accommodative policy stance by the central bank.
Bid rates for the 91-day bill ranged between 4.7000% and 5.0845%, while accepted rates were allotted in full between 4.7000% and 4.9383%.
For the 182-day bill, bid rates ranged from 6.6699% to 6.9964%, with accepted bids allotted between 6.6699% and 6.9032%.
The 364-day bill attracted rates between 9.0000% and 9.5841%, with full allotment occurring between 9.0000% and 9.5023%.
The lower yield environment signals improving macroeconomic conditions as inflation eases and liquidity levels strengthen across the banking and fixed income market.
Government Relies on Domestic Market Funding
For government, the successful auction provides critical short-term financing support as authorities continue to depend heavily on the domestic market following Ghana’s debt restructuring programme.
The Bank of Ghana disclosed that in the previous Tender 2006 auction, government received GH¢7.83 billion in bids and accepted GH¢6.09 billion.
For the next auction, Tender 2008, government is targeting GH¢4.49 billion across the three Treasury bill tenors.
Market observers say the next auction will be closely watched to determine whether investor demand can remain resilient after two consecutive weeks of strong government borrowing.
The latest results nevertheless reinforce one key market signal: demand for Ghana’s short-term government securities remains strong even as yields continue to moderate in response to improving economic conditions and shifting interest-rate expectations.
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