Ghana Raises GH¢8.65bn in Oversubscribed T-Bill Sale as One-Year Borrowing Costs Edge Higher

Ghana’s domestic debt market continued to attract strong investor appetite after the government raised GH¢8.65 billion from its latest Treasury bills auction, comfortably exceeding its financing target despite a modest increase in the yield on one-year securities.

Results released by the Bank of Ghana showed investors submitted GH¢10.5 billion in bids against a target of GH¢5.87 billion, representing an oversubscription of approximately 79%. The Treasury accepted just over GH¢8.65 billion, reflecting both sustained liquidity in the financial system and continued demand for government paper.

Investor preference remained firmly tilted towards longer-dated short-term instruments. The 364-day Treasury bill accounted for about 71% of total bids, attracting GH¢7.47 billion, of which GH¢7.17 billion was accepted. The strong demand suggests investors are increasingly locking in returns amid expectations of changing interest rate conditions.

The 91-day bill drew GH¢2.27 billion in subscriptions, with the government accepting about GH¢927 million, while the 182-day instrument received GH¢757.9 million, of which GH¢501.4 million was taken up.

Yield movements were mixed across the maturity spectrum. The 91-day bill remained unchanged at 5.76%, while the 182-day yield eased marginally to 7.64% from 7.68%. However, the 364-day bill recorded a 2-basis-point increase to 12.96%, signalling that investors demanded a slightly higher return for holding government debt over a longer tenor.

The latest auction underscores the government’s continued ability to mobilise domestic financing at scale, although the uptick in one-year yields points to lingering market caution over future inflation and interest rate expectations. The results also reinforce the Treasury bill market’s central role in funding the government’s short-term financing needs while providing investors with a relatively secure investment avenue.