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Treasury bill auction oversubscribed as Government raises GHS 8.29bn

 Treasury Bill

Government exceeded its Treasury bill target at the latest auction, raising GHS 8.29 billion against a target of GHS 7.43 billion,

The auction underscores strong investor appetite for short-term government securities.

According to data from the Bank of Ghana, total bids submitted across the 91-day, 182-day and 364-day Treasury bills amounted to GHS 8.44 billion. Of this, the government accepted GHS 8.29 billion, translating into an acceptance rate of 98.31%.

The amount raised exceeded the target by GHS 868.98 million, representing 11.7% above the government’s intended borrowing level.

Investor demand remained heavily skewed toward shorter-dated instruments, with the 91-day bill accounting for the largest share of accepted bids.

The government accepted the entire GHS 6.04 billion tendered for the 91-day bill, representing 72.8% of the total amount raised across all three maturities.

For the 182-day bill, investors submitted bids worth GHS 1.10 billion, of which GHS 1.04 billion was accepted. Meanwhile, the 364-day bill attracted GHS 1.30 billion in bids, with GHS 1.22 billion accepted.

The results highlight continued investor preference for short-term government securities, reflecting demand for liquidity, lower duration risk and relatively predictable returns in the money market.

Treasury bill yields remained relatively contained.

The 91-day bill cleared at a weighted average interest rate of 5.04%, while the 182-day bill settled at 7.08%. The 364-day bill recorded a weighted average yield of 10.98%, maintaining a significant premium over the shorter-tenor instruments.

Accepted rates for the 91-day bill ranged between 4.86% and 5.58%, while the 182-day bill was allotted within a band of 7.00% to 7.15%. For the 364-day bill, accepted rates ranged from 10.50% to 11.25%.

Compared with the previous auction held on June 5, 2026, the government’s short-term borrowing increased significantly.

At that auction, total bids amounted to GHS 6.09 billion, with GHS 5.83 billion accepted. The latest accepted amount of GHS 8.29 billion therefore represents a 42.2% increase over the previous week’s sale.

The sharp rise in accepted bids suggests the government continues to enjoy robust demand in the domestic debt market, even as investors remain more comfortable with shorter maturities.

The strong auction outcome provides the government with additional near-term financing support at a time when domestic revenue mobilisation, expenditure management and debt-service obligations remain key fiscal priorities.

For investors, Treasury bills continue to serve as an attractive vehicle for cash management and relatively low-risk cedi-denominated returns, particularly for banks, pension funds, fund managers, corporates and individual investors seeking short-term placements.

The latest results also reinforce the dominance of the 91-day bill in current market demand, with investors showing a clear preference for shorter tenors over longer-dated government securities.

Looking ahead, the government has set a lower target of GHS 5.27 billion for the next auction, Tender 2012, covering the 91-day, 182-day and 364-day bills.

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