The government raised about GH¢120.2 billion from the Treasury bill market between January and April 2026, compared to the GH¢181.5 billion submitted by investors during the period.
The figures suggest a cautious borrowing approach by the Treasury as authorities attempted to meet financing requirements while also limiting borrowing costs amid changing market liquidity conditions.
Investor demand trends
Data from the Bank of Ghana shows that market activity unfolded in two distinct phases. Between January and mid-March, investor appetite remained strong, resulting in 11 straight oversubscribed auctions. Demand reached its highest point in mid-February when total bids hit GH¢22.67 billion against a target of GH¢6.42 billion.
From late March into April, however, investor interest weakened considerably as Treasury bill yields dropped sharply. During this period, the market experienced six consecutive undersubscribed auctions. Tender 2002 recorded one of the weakest performances, with bids of GH¢5.31 billion falling nearly 30% below the GH¢7.57 billion target.
Performance across tenors
As interest rates declined, investor preferences shifted across different maturities. Earlier in the year, longer-dated instruments attracted stronger demand, with the 364-day bill receiving GH¢15.18 billion in bids in January.
By the close of April, demand for the same tenor had declined significantly to around GH¢3.12 billion as investors showed less interest in locking in funds for longer periods at reduced yields.
During the final auction in April, most investor interest centred on the 91-day bill, which attracted GH¢2.8 billion in bids, of which GH¢2.7 billion was accepted. The 182-day bill received GH¢717.6 million in bids, with GH¢664.4 million accepted, while the 364-day bill recorded GH¢960.1 million in bids, but only GH¢522.5 million was taken up.
Interest rates and yield movements
The notable decline in yields played a major role in changing investor behaviour. At the beginning of 2026, the 91-day Treasury bill carried an average yield of 11.12%, while the 364-day instrument offered 12.93%.
By the end of April, yields had fallen substantially, with the 91-day rate dropping to 4.92% and the 364-day bill easing to 10.20%. The lower returns reduced the appeal of Treasury bills, especially toward the latter part of the period.
Market strategy and outlook
The figures indicate that government took advantage of strong liquidity conditions in the first quarter to secure funding early at comparatively higher rates.
As yields declined and investor demand weakened, the Treasury appeared to adopt a stricter borrowing strategy, often accepting fewer bids than the total amounts offered by investors.
The large volume of rejected bids in April reflects a deliberate effort to manage borrowing costs, with authorities prioritising cheaper financing instead of fully meeting auction targets.
Overall, the trend points to a careful balancing of the government’s financing needs with efforts to control interest expenses within an evolving market environment.