The government has recorded a GH¢2.575 billion exceeding its Treasury Bill target, raising GH¢8.99 billion against a GH¢6.415 billion target. This was contained in data released by the Bank of Ghana (BoG).

This indicates about a 40.2% oversubsciption of the target, indicating a strong demand from investors who want to lend money to the government.

According to data from Tender 1994, held on February 13, total bids submitted amounted to GH¢22.67 billion across the 91-day, 182-day, and 364-day tenors, of which the government accepted GH¢8.99 billion, representing a subscription rate of approximately 141% above the target.

Tender 1994, is a government securities auction through which investors bid to purchase Treasury Bills, short-term debt instruments used to raise funds for public financing

The 91-day bill, the most liquid instrument on the money market, was issued at a weighted average discount rate of 8.4281 per cent, corresponding to an interest rate of 8.6095 per cent.

The 182-day bill recorded a weighted average discount rate of 10.1376 per cent, while the 364-day bill registered 9.9602 per cent.

The central bank stated that bids were allotted on a partial basis, with rates ranging from 7.8431 per cent to 11.60 per cent, depending on the tenor. Successful bidders will have their securities issued on February 16, 2026.

The Government has set a target of GH¢9.322 billion for Tender 1995, scheduled for the coming week.

Meanwhile, investor interest and confidence in government treasuries remain high as the treasury bill auction exceeds the target by over 60%.

In auction results posted by the Bank of Ghana, the government accepted GH¢12.8 billion in bids at the latest auction, above its GH¢9.8 billion target, although investors submitted bids worth GH¢15.9 billion.

The reports also show that the majority of investors preferred the 364-day (one-year) treasury bill, for which they offered about GH¢7.4 billion, making up nearly half of all the money investors offered.

Out of this amount, the government accepted just over GH¢5.0 billion.

Also, for the 182-day (six-month) treasury bill, investors offered about GH¢4.29 billion, and the government accepted almost all of it, around GH¢4.28 billion.

For the 91-day (three-month) bill, investors offered about GH¢4.1 billion, of which the government accepted about GH¢3.4 billion.

On the other hand, interest rates continued to rise at the longer end of the yield curve.

The yield on the 91-day bill remained at 11.19%.

That of the 182-day bill, however, went up to 12.66% from 12.64% the previous week.

Additionally, the yield on the 364-day bill increased by eight basis points to 13.06%.

Meanwhile, the iversubscription has been a trend in the last few months.Government saw another significant oversubscription in its primary T-bill auction, the Bank of Ghana (BoG) announced, following its August 1 auction last year.

This comes after demand surged 42.07 percent above the target.

Reports from the Bank of Ghana indicated that the latest figures showed the government had planned to raise GHS 3.86 billion through Treasury bills, but it, however, accepted a total of GHS 5.48 billion. This was a result of investor interest exceeding expectations.

Specifically, GHS 4.32 billion was taken from GHS 4.86 billion in bids for the 91-day bill, GHS 823 million from GHS 1.15 billion for the 182-day bill, and GHS 343 million out of GHS 774 million for the 364-day bill.

Experts say the high demand happened because big investors, like banks and companies, wanted to buy Treasury bills then, while the interest rates were still high. They believe that interest rates and inflation might go down soon, so they want to secure the good returns before that happens.

How was t-bill auction earlier in 2025?

In early 2025, when the government assumed office, T-bill auctions were struggling, with eight consecutive weeks of undersubscription. Among some of the reasons for the undersubscription were investor liquidity constraints, where financial institutions and investors faced cash flow challenges, diminishing their interest in investing in government securities.

Another reason for the undersubscription was other attractive competing investment options, such as the Bank of Ghana’s OMO bills, which were offering higher interest in comparison to T-bills and influencing institutions’ and the public’s preferences. The Bank of Ghana’s OMO bills were short-term debt instruments used in Open Market Operations (OMO), a key tool for managing money supply and interest rates in the economy.

Market uncertainty was another undersubscription challenge. Due to the previous government’s Domestic Debt Exchange Programme (DDEP) and other concerns about inflation and fiscal discipline, investors treaded cautiously, closely monitoring fiscal decisions by the new government.

Tight monetary conditions, with less money circulating in the system, also caused demand for short-term debt instruments to drop, accounting for the undersubscription.

In April, the government failed to meet its Treasury bill target for the third week in a row. It fell short by GH¢2.69 billion after rejecting GH¢2.37 billion worth of bids, likely because the interest rates offered by investors did not meet the government’s expectations.

According to Bank of Ghana data, the government aimed to raise GH¢4.39 billion through short-term borrowing but received only GH¢1.69 billion in bids. This represented a shortfall of 61.46%.

For the 91-day bill, the government received GH¢3.38 billion in bids but accepted only GH¢1.45 billion. For the 182-day bill, GH¢501.17 million was tendered, but only GH¢81.09 million was accepted.

The 364-day bill saw GH¢176.26 million in bids, with GH¢161.26 million accepted.