Ghana’s domestic money market continues to show resilience as government recorded its 8th consecutive over-subscription of 2026.
In the latest Treasury bill auction held on February 20, 2026, investor demand nearly tripled government’s expectations, even as interest rates across all tenors saw a significant decline.
Government entered the auction seeking to raise GHC9.322 billion.
However, it was met with a massive tidal wave of bids totalling GHC25.201 billion.
While the government had the opportunity to take more, it exercised caution by accepting GHC11.410 billion, approximately 45 per cent of the total bids offered, but still well above its initial target.
The rate of subscription was 270.33 per cent, while the rate of oversubscription was 170.33 per cent.
The auction saw a notable decline in interest rates, signalling a potential shift in market expectations.
The 91-Day Bill attracted offers of GHC8.605 billion, with government accepting GHC3.187 billion at a yield of 6.45 per cent.
For the 182-Day Bill, investors offered GHC7.219 billion, of which GHC2.445 billion was accepted at an interest rate of 8.18 per cent.
The 364-Day Bill saw the highest level of acceptance; while offers totalled GHC9.376 billion, government took GHC5.777 billion at a yield of 10.21 per cent.
This consistent over-subscription highlights a strong preference for government paper among domestic investors amidst the current economic climate. The downward trend in yields suggests a cooling of the high-interest-rate environment seen in previous years, which could eventually translate to lower borrowing costs across the wider economy.
Looking ahead, the government has set a significantly lower target for its next T-bill auction, seeking to raise GHC5.805 billion.
Analysts will be watching closely to see if the high demand persists as the Treasury scales back its borrowing requirements for the upcoming week.
By 3Business
