Govt Rejects GH¢874 Million In Treasury Bill Bids Despite Strong Investor Demand

According to a report by Citi FM on Monday October 26, 2026, Ghana’s government has rejected approximately GH¢873.94 million in Treasury bill bids after investors offered more money than the amount targeted at the latest auction, signalling the authorities’ decision not to accept all the funds presented by the market.

The auction results, published on Monday, October 26, 2026, show that investors tendered a total of GH¢4.27 billion against a government target of GH¢3.80 billion.

However, the Treasury accepted only GH¢3.39 billion, leaving a substantial portion of the submitted bids unaccepted.

The development highlights the government’s approach to domestic borrowing as it seeks to raise funds through short-term securities while managing the cost of servicing its debt.

Although investor demand exceeded the announced target, the government did not take advantage of the entire amount offered. The decision meant that the Treasury raised less than its intended GH¢3.80 billion, despite receiving bids that were sufficient to cover the target.

The 91-day Treasury bill remained the most popular instrument among investors, attracting bids worth approximately GH¢2.86 billion during the auction.

Out of this amount, the government accepted GH¢2.55 billion, with the yield settling at 4.61 per cent.

The strong demand for the short-term instrument indicates that investors continued to show considerable interest in securities that allow them to commit their funds for a relatively brief period before receiving their principal and returns.

The 182-day Treasury bill also attracted investor interest, recording bids worth GH¢533.28 million. The government accepted GH¢420.66 million, with the yield standing at approximately 6.29 per cent.

Meanwhile, the 364-day Treasury bill received bids totalling GH¢873.69 million. However, only GH¢420.24 million was accepted, with the yield reaching 9.67 per cent.

The figures show that the government accepted a significantly smaller proportion of the funds offered for the one-year instrument compared with the amount submitted by investors.

Despite receiving bids exceeding its target, the government secured approximately GH¢3.39 billion, falling short of the GH¢3.80 billion it intended to raise.

The difference between the target and the amount accepted was about GH¢407.34 million.

The results illustrate an important distinction in the Treasury bill market: receiving sufficient bids does not necessarily mean the government will accept all the money offered.

The Treasury determines how much it is willing to borrow based on its financing requirements and the terms of the bids submitted by investors.

Rejecting some bids can therefore limit the amount raised, even when overall demand is strong. The auction figures alone, however, do not establish the precise reasons behind each rejected bid.

Treasury bills are among the instruments the government uses to raise funds from domestic investors, including banks, financial institutions and other market participants.

The securities provide the government with short-term financing while offering investors an avenue to earn returns on their funds.

The yields attached to the different maturities are important because they determine the cost of borrowing for the government. Lower yields generally mean cheaper borrowing, while higher yields increase the interest costs associated with issuing new securities.

The latest auction recorded yields of 4.61 per cent for the 91-day bill, approximately 6.29 per cent for the 182-day bill and 9.67 per cent for the 364-day bill.

These differences reflect the varying returns associated with the three investment periods.

For the government, the challenge is to secure enough funds to meet its financing needs without placing unnecessary pressure on borrowing costs.

For investors, the decision to purchase Treasury bills depends on factors such as expected returns, liquidity needs and the attractiveness of alternative investment opportunities.

The rejection of a portion of the bids therefore provides an important picture of the interaction between government financing decisions and investor demand.

The distribution of bids also reveals the extent to which investor interest was concentrated in the shorter end of the Treasury bill market.

The 91-day instrument accounted for the largest share of bids and received the highest amount of government acceptance in absolute terms.

By contrast, the government accepted less than half of the amount tendered for the 364-day bill.

This pattern is significant because the choice of borrowing maturity affects how frequently the government must return to the market to refinance its obligations.

Shorter-term securities mature more quickly and may require more frequent refinancing, while longer-term borrowing can provide funding for an extended period.

However, the relative cost of each instrument and the willingness of investors to commit funds for longer periods also influence the government’s borrowing decisions.

The latest figures suggest that demand remained strongest for the 91-day bill, while a substantial portion of the funds offered for the one-year security was left unaccepted.

The latest auction comes as market participants continue to monitor developments in Ghana’s domestic debt market, particularly the relationship between government borrowing requirements, investor appetite and interest rates.

The government’s decision to reject nearly GH¢874 million in bids, despite receiving offers above its target, is likely to attract attention from investors assessing the direction of Treasury bill yields and the government’s financing strategy.

The results show that investor interest remained sufficient to exceed the government’s announced target, but the amount ultimately raised was lower than planned.

Going forward, the balance between the Treasury’s financing needs and the returns demanded by investors will remain important in determining how much the government can raise at future auctions and the cost at which it can access domestic funds.

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