Ghana T-Bills Auction Oversubscribed by 60% But Borrowing Costs Climb Sharply

Ghana's government has recorded a significant oversubscription in its latest treasury bills auction, drawing bids nearly double its target — though the strong appetite came at a steeper price, as investors pushed for higher returns on their money.

Investors tendered a total of GH¢7.37 billion against a government target of GH¢4.6 billion, representing roughly 60% oversubscription. Authorities accepted GH¢6.01 billion of the submitted bids, reflecting selective uptake across the three bill categories.

The bulk of investor interest was concentrated in the longer-dated instrument. The 364-day bill accounted for 73% of total bids, with GH¢5.43 billion tendered and GH¢4.28 billion accepted. The 91-day bill attracted GH¢1.47 billion in bids, of which GH¢1.34 billion was taken up, while the 182-day bill saw GH¢461.91 million tendered and GH¢378.80 million accepted.

The strong demand, however, came at a notable cost to the government. Interest rates climbed sharply, with the yield on the 364-day bill surging by 237 basis points to reach 12.82% — the highest level recorded since January 2026. The 182-day bill yield rose from 7.04% to 7.69%, while the 91-day bill yield increased by 74 basis points to 5.73%.

The spike in yields signals that investors are demanding greater compensation, possibly reflecting concerns about inflation expectations or liquidity conditions. Rising borrowing costs could put additional pressure on Ghana's fiscal position, as the government relies heavily on domestic debt instruments to finance its budget obligations.

Analysts are likely to watch closely whether the upward trend in yields continues in subsequent auctions, as sustained increases could weigh on government debt servicing costs at a time when fiscal consolidation remains a key priority under Ghana's IMF-supported programme.