The government recorded an 11th consecutive oversubscription in the Treasury bills market with investor demand surging to nearly three and a half times its target, even as interest rates fell sharply across all tenors.
At the auction held on Friday, February 7, 2026, the government set out to raise 5.0 billion Ghana cedis but investors submitted bids worth 17.2 billion cedis, producing a 246 percent oversubscription. The government accepted 5.8 billion cedis, taking in 900 million cedis more than planned while rejecting bids amounting to 11.4 billion cedis.
This marks the 11th week in succession that demand has exceeded the government’s target, reinforcing evidence of deep liquidity in the market and sustained appetite for short-term government securities. The pattern reflects renewed investor confidence following the Bank of Ghana’s (BoG) 250 basis point reduction in the policy rate to 15.50 percent.
Demand remained strong across all instruments. The 91-day bill attracted 6.6 billion cedis, the 182-day bill recorded 3.7 billion cedis, while the 364-day bill drew 6.9 billion cedis in bids. The one-year paper emerged as a preferred option for investors seeking to lock in returns amid expectations of further monetary policy adjustments.
The auction delivered further relief on interest rates. Yields declined significantly across the curve, reducing the cost of new borrowing for the government. The 91-day rate fell from 10.83 percent to 9.97 percent, the 182-day rate eased from 12.38 percent to 11.82 percent, while the 364-day rate dropped from 12.82 percent to 12.06 percent.
Lower yields translate to cheaper rollover of maturing bills and reduced interest costs on new issuance, offering breathing space at a time when borrowing needs remain elevated. Ghana’s domestic debt stood at 201.6 billion cedis as of December 2025, representing 45.7 percent of gross domestic product.
The sustained oversubscriptions and declining rates point to improved market conditions following the completion of the Domestic Debt Exchange Programme (DDEP) in 2023. The government restructured approximately 137 billion cedis in domestic bonds through the exchange, which restored confidence in debt sustainability.
While the pattern demonstrates renewed investor confidence, the scale of demand and repeated acceptance above target highlight the government’s continued reliance on the short-term domestic market to manage cash flow needs. The Treasury regularly uses bill auctions to finance budget deficits and refinance maturing obligations.
The government plans to raise a target of 6.4 billion cedis in its upcoming auction this week. Market analysts expect strong demand to continue given current liquidity conditions and the alignment of Treasury bill rates with the central bank’s policy stance.
Ghana’s Treasury bill market serves as a critical barometer of investor sentiment toward government fiscal management and economic stability. The instruments provide short-term financing for government operations while offering investors relatively safe returns backed by the full faith and credit of the state.
The Bank of Ghana conducts weekly auctions for 91-day, 182-day and 364-day Treasury bills through authorized primary dealers. The instruments remain accessible to individual and institutional investors through financial institutions with minimum purchase amounts starting from 100 cedis.
