Ghana breaks seven-week slump: T-bill auction oversubscribed as gov’t exceeds targets

Government of Ghana successfully halted a nearly two-month streak of fiscal underperformance on the domestic market last Friday.

In a significant turnaround for the Treasury, the auction held on May 8, 2026, saw a massive surge in investor demand, allowing the government to exceed its initial borrowing target for the first time in eight weeks.

Faced with a target of GHC4.349 billion, government was met with an enthusiastic response from the investment community, with total bids reaching GHC7.830 billion.

Capitalising on the high liquidity in the market, the Treasury opted to accept GHC6.087 billion across the 91-day, 182-day, and 364-day tenors, representing a significant intake above its original goal.

The 91-day bill remained the primary driver of the auction, attracting offers of GHC5.715 billion, with government accepting GHC4.374 billion at a yield of 4.88 per cent.

The 182-day bill saw bids of GHC651.22 million and an accepted amount of GHC571.64 million at 7.03 per cent.

Finally, the 364-day bill drew GHC1.462 billion in offers, with GHC1.141 billion accepted at a yield of 10.13 per cent.

This successful outing marks a pivotal moment for fiscal managers as they look to stabilise domestic financing amidst shifting market dynamics.

Subscription rate was 180.04 per cent, oversubscription rate was 80.04 per cent and acceptance ratio: 77.74 per cent.

The oversubscription marks a return of investor confidence in short-term government securities, likely driven by a stabilising interest rate environment and a shift back from other market instruments.

Source: 3news.com by Eben Agyekum-Boateng