Treasury Bill Demand Surges 30% Above Target as Borrowing Costs Continue to Ease

The Government of Ghana attracted strong investor demand in its latest Treasury bill auction, raising significantly more bids than targeted as interest rates extended their downward trend, reinforcing signs of improving confidence in the country’s fiscal and macroeconomic outlook.

Data released by the Bank of Ghana showed investors submitted GH¢12.37 billion in bids against the government’s target of GH¢9.49 billion, representing an oversubscription of about 30.3%. The government accepted GH¢11.54 billion, rejecting a small portion of bids to manage its borrowing profile.

The 364-day Treasury bill dominated investor appetite, accounting for over 65% of total subscriptions. Investors tendered GH¢8.11 billion, of which GH¢7.82 billion was accepted. The 91-day bill recorded bids of GH¢2.95 billion, with GH¢2.60 billion accepted, while the 182-day bill attracted GH¢1.30 billion, of which GH¢1.12 billion was taken up.

The auction came during the same week Finance Minister Dr. Cassiel Ato Forson presented Ghana’s 2026 Mid-Year Budget Review, suggesting investors remain confident in the government’s near-term fiscal direction.

Yields continued their gradual decline across all maturities, indicating easing government borrowing costs. The 91-day Treasury bill fell by 11 basis points to 5.76%, the 182-day bill eased to 7.68% from 7.78%, while the 364-day bill slipped 3 basis points to 12.96%.

The latest auction extends a recent trend of strong demand for government securities, providing the Treasury with continued access to domestic financing at progressively lower interest rates while reflecting sustained liquidity and investor confidence in Ghana’s money market.