The government of Ghana mobilised GHS 120.2 billion from Treasury bills between January and April 2026. This figure represents a significant sum borrowed from the short-term debt market. Investor bids during the same period totalled GHS 181.5 billion, indicating substantial market interest.
This borrowing activity reflects a calculated approach by the government to manage its financing needs. It also shows a strategy to control rising borrowing costs. The period saw a clear shift in investor sentiment and market performance. This prompted adjustments in how the government approached securing funds.
The Ghanaian economy has been navigating various fiscal pressures. Treasury bills are a key tool for the government to finance its operations and development projects. In 2025, Ghana faced global economic headwinds that impacted its financial markets. The current borrowing patterns reflect lessons learned from previous fiscal challenges. Data from the Bank of Ghana tracks these market dynamics closely.
Bank of Ghana data shows a divided market trend. Investor interest was high from January to mid-March. This resulted in 11 Treasury bill auctions being oversubscribed. Oversubscribed means investors wanted to buy more bills than the government offered. Demand was strongest in mid-February. Bids reached GHS 22.67 billion, far above the GHs 6.42 billion target. This showed strong short-term cash availability in the financial system.
However, market sentiment changed from late March into April. Investor demand weakened considerably. This happened as interest rates, known as yields, fell sharply. The market then saw six consecutive undersubscribed auctions. An undersubscribed auction means fewer bids were received than the target amount. One auction, Tender 2002, had bids of GHS 5.31 billion. This was about 30 per cent less than its GHS 7.57 billion target. This weakened demand at lower returns.
Investor preferences also shifted across different loan lengths. Longer-dated bills, like the 364-day bill, were initially popular. In January, bids for the 364-day bill reached GHS 15.18 billion. By April, this amount dropped significantly to GHS 3.12 billion. Investors were less keen to lend money for longer periods at lower rates. In the final April auction, demand focused on shorter-term bills. The 91-day bill became the most subscribed instrument. This shift indicates investor caution about locking in funds at reduced potential gains.
The sharp decline in interest rates, or yields, was a major driver of these changes. The interest rate on the 91-day bill fell from 11.12 per cent in January to 4.92 per cent by April. The 364-day bill rate eased from 12.93 per cent to 10.20 per cent during the same period. This reduction in returns made Treasury bills less attractive, especially for longer investment periods. The government seems to have borrowed heavily in the first quarter when market conditions were favourable. It then reduced its borrowing when market demand softened.
Higher bid rejections in April suggest a deliberate strategy. The government prioritised cost efficiency over fully meeting auction targets. This shows authorities adapting to changing market liquidity and interest rate conditions. This flexibility is crucial for managing public debt effectively. It ensures that borrowing costs remain manageable for the government.