Ghana’s short-term debt market saw a dramatic shift last week as Treasury bill yields dropped sharply, reflecting changing investor sentiment and a redirection of funds into government securities following policy rate adjustments by the Bank of Ghana.
For the first time in two months, the government’s Treasury bill auction was oversubscribed—thanks to a surge in investor demand that nearly doubled the GHS 5.44 billion target. According to the Bank of Ghana, total bids reached GHS 20.98 billion, with GHS 10.64 billion accepted—enough to not only meet the target but also cover GHS 5.24 billion in maturing obligations.
The renewed appetite for T-bills comes in the wake of a steep drop in yields across all tenors. The 91-day bill yield fell by 93 basis points to 13.72%, while the 182-day yield slipped 41 basis points to 14.61%. The 364-day paper followed suit, shedding 68 basis points to settle at 14.73%.
Analysts attribute the resurgence in T-bill demand to recent reductions in the Bank of Ghana’s monetary instruments—especially the BoG Bills, which previously offered 27% yields but have since seen significant cuts. The resulting shift has made T-bills relatively more attractive for investors seeking short-term gains amid falling rates elsewhere.
The breakdown of the bids shows that investors submitted GHS 13.77 billion for the 91-day bill, of which GHS 5.65 billion was accepted. For the 182-day and 364-day instruments, accepted bids were GHS 2.99 billion and GHS 2.00 billion, respectively, from total subscriptions of GHS 4.22 billion and GHS 2.98 billion.
With investor confidence seemingly rebounding in the short-term debt market, the government is now eyeing a higher target of GHS 7.70 billion in its next auction.
Market watchers are closely monitoring whether the current demand momentum will hold in the face of continued yield compression.
