Gov’t has borrowed GHS120bn from Treasury Bills during the first four months of 2026

Between January and April 2026, the Government raised about GHS120.2 billion from the Treasury bill market. This was against GHS181.5 billion offered by investors. This shows that the government used a careful borrowing strategy, balancing its need for financing with efforts to keep borrowing costs low as market conditions changed.

Investor demand changed over time. From January to mid-March, strong interest led to 11 successful auctions, with more bids than targeted. The highest demand was in mid-February, with total bids reaching GHS22.67 billion, while the target was GHS6.42 billion.

However, from late March to April, demand dropped as yields fell sharply. The market saw six consecutive auctions with fewer bids than needed. Notably, in Tender 2002, bids totaled GHS5.31 billion, which was nearly 30% below the GHS7.57 billion target.

Investor preferences shifted as yields changed. Earlier in the year, there was more interest in longer-term bills. In January, the 364-day bill attracted GHS15.18 billion in bids. By the end of April, bids for this bill dropped sharply to about GHS3.12 billion as investors hesitated to commit to longer durations at lower yields.

In the last auction of April, demand focused on the 91-day bill, which attracted GHS2.8 billion in bids; GHS2.7 billion of this was accepted. The 182-day bill saw GHS717.6 million in bids, with GHS664.4 million accepted. The 364-day bill attracted GHS960.1 million in bids, but only GHS522.5 million was accepted.

The drop in yields significantly affected demand. At the year’s start, the 91-day bill had an average yield of 11.12%, while the 364-day bill offered 12.93%. By the end of April, yields dropped dramatically, with the 91-day bill at 4.92% and the 364-day bill at 10.20%. This decline made T-bills less appealing, especially as April progressed.

The data show that the government took advantage of strong liquidity in the first quarter to borrow at higher rates. As yields fell and demand decreased, the Treasury became more disciplined in issuing bills, often accepting bids below the total submitted.

The significant rejections of bids in April reveal a clear cost-management strategy. The Treasury prioritized lower borrowing costs over fully meeting auction targets.