Strong Investor demand pushes government to reject treasury bill bids

Investor demand for Ghana Government short-term securities exceeded expectations during the latest Treasury bill auction on July 10, 2026, prompting authorities to reject some high-cost bids in an effort to control borrowing expenses.

For Tender 2015, government targeted GH¢5.669 billion but received offers exceeding GH¢10 billion, reflecting strong appetite for government securities among investors.

Data from the auction showed that investors submitted total bids of GH¢10.034 billion, significantly above the government’s borrowing target.

To balance its financing requirements with the need to avoid paying excessive interest rates, the Treasury accepted GH¢7.383 billion of the bids while rejecting about 26.4% of the total offers.

The auction recorded a 177% subscription rate, a 77% oversubscription rate, and an acceptance rate of 73.58%.

The benchmark 91-day and 182-day Treasury bills recorded marginal one-basis-point reductions in yields compared with the previous week, reflecting strong liquidity conditions and increased competition among investors for shorter-term instruments.

However, the 364-day bill saw its yield rise to 12.99%, suggesting investors demanded higher returns for committing funds over a longer period amid prevailing economic uncertainties.

The 91-day Treasury bill attracted bids worth GH¢2.981 billion, out of which government accepted GH¢1.796 billion at a yield of 5.86%.

For the 182-day bill, investors submitted offers totalling GH¢1.398 billion, with the government taking GH¢1.057 billion at an interest rate of 7.78%.

The 364-day Treasury bill emerged as the most sought-after instrument, receiving investor bids amounting to GH¢5.654 billion.

The Treasury accepted GH¢4.529 billion from the one-year bill offers, with the final yield settling at 12.99%.

The strong demand signals continued investor confidence in government securities, although the selective rejection of some bids highlights efforts by authorities to manage borrowing costs while meeting financing needs.