The Government of Ghana has raised GH¢2.90 billion from its latest Treasury bill auction, exceeding its GH¢2.75 billion target as the Treasury accepted a larger share of investor bids.
Tender 2026, conducted on September 25 for securities issued on September 28, attracted GH¢3.66 billion in bids across the 91-day, 182-day and 364-day bills.
The government accepted 79.3 per cent of the total bids, raising GH¢146.86 million more than its target. The auction recorded a bid-cover ratio of 1.26 against the target and 1.33 when total bids are compared with the amount accepted.
The outcome represents a reversal from the previous auction, when the government received GH¢3.96 billion in bids against a GH¢4.12 billion target but accepted only GH¢2.21 billion.
Although total investor bids fell by GH¢300.42 million this week, the amount accepted increased by GH¢686.19 million, or 31 per cent. The stronger financing outcome was therefore driven largely by the Treasury accepting a greater proportion of the bids rather than an increase in overall demand.
Weighted average interest rates also declined across all three maturities, allowing the government to raise more funds without paying higher yields.
The 91-day bill remained the dominant instrument, attracting GH¢2.08 billion in bids, of which GH¢1.88 billion was accepted. This represented an acceptance rate of 90.5 per cent and accounted for 64.9 per cent of the total funds raised.
Its weighted average interest rate fell marginally to 4.6785 per cent from 4.6941 per cent in the previous auction, while the weighted average discount rate stood at 4.6244 per cent.
For the 182-day bill, investors submitted GH¢702.95 million in bids, up from GH¢452.79 million the previous week. The Treasury accepted GH¢520.57 million, representing 74.1 per cent of the amount tendered.
The six-month bill cleared at a weighted average interest rate of 6.3701 per cent, down from 6.4895 per cent, while its weighted average discount rate stood at 6.1734 per cent.
The 364-day bill recorded GH¢876.72 million in bids, with GH¢497.74 million accepted. Its acceptance rate was 56.8 per cent, significantly higher than the 9.1 per cent recorded in the previous auction, when only GH¢110.52 million was accepted from GH¢1.21 billion in bids.
The one-year bill also recorded the largest decline in borrowing cost. Its weighted average interest rate fell to 9.8339 per cent from 9.9820 per cent, while the weighted average discount rate declined to 8.9534 per cent.
Despite the increase in one-year borrowing, the 364-day bill accounted for only 17.2 per cent of total funds raised, leaving the Treasury’s borrowing structure heavily concentrated in short-term securities.
The latest auction continues a broader decline in Treasury bill rates. Since Tender 2024, the weighted average rates on the 91-day, 182-day and 364-day bills have fallen from 4.6949 per cent, 6.5107 per cent and 10.1017 per cent respectively, to 4.6785 per cent, 6.3701 per cent and 9.8339 per cent.
The decline has been more pronounced on the longer maturities, suggesting some progress in reducing borrowing costs further along the Treasury bill curve.
However, the heavy reliance on the 91-day bill remains a financing risk because a large portion of the government’s borrowing will have to be refinanced within a short period.
The Bank of Ghana has set a lower target of GH¢2.24 billion for Tender 2027, which is GH¢510 million below the latest target and GH¢656.86 million below the amount raised in the latest auction.
While the lower target could help the Treasury limit short-term borrowing and potentially place further downward pressure on yields, the auction results do not by themselves confirm a broad recovery in investor demand.
The latest figures instead show that investor demand was sufficient to meet a reduced target and that the Treasury was more willing to accept bids than it was at the previous auction.
For now, the government has secured more funding at lower yields, but its continued dependence on short-term Treasury bills means refinancing pressures remain an important consideration for its domestic borrowing programme.
