The Ghanaian government rejected GH¢873.94 million in Treasury bill bids at its latest auction, even though investors tendered GH¢4.27 billion against a target of GH¢3.80 billion, according to auction results released by the Bank of Ghana.
The government accepted GH¢3.39 billion of the total bids submitted, representing about 79.5% of investor demand. The accepted amount fell short of the GH¢3.80 billion target by approximately GH¢407.34 million, creating an unusual outcome in which the auction was simultaneously oversubscribed on the bid side and undersubscribed on the acceptance side .
91-Day Bill Dominates Demand
The 91-day bill attracted the strongest investor interest, drawing GH¢2.86 billion in bids. The government accepted GH¢2.55 billion at a yield of 4.61%. The 182-day bill saw GH¢533.28 million tendered, with GH¢420.66 million accepted at 6.29%. For the 364-day instrument, investors submitted GH¢873.69 million in bids, of which only GH¢420.24 million was accepted at a yield of 9.67% .
The rejection of bids signals that the Treasury is exercising selectivity rather than accepting whatever the market offers. This pattern has emerged in previous auctions, where the government rejected expensive offers even when it fell short of its targets.
Context: Q4 Borrowing Programme
The auction comes as the government pursues a GH¢15.38 billion net domestic financing target for the fourth quarter of 2026. The borrowing programme, outlined in the Bank of Ghana’s issuance calendar, includes weekly Treasury bill auctions alongside medium- and long-term securities, as well as a planned buyback of 2027 bonds issued under the Domestic Debt Exchange Programme . The government has said the buyback operations will be supported by the full operationalisation of the sinking fund.
The rejection of GH¢874 million in bids may reflect the Treasury’s reluctance to lock in certain rates amid a shifting yield environment. The 364-day yield of 9.67% represents a premium over shorter tenors, but the government appears unwilling to accept the full volume of demand at that price.
Inflation and Rate Environment
Ghana’s inflation rate stood at 5.2% in September 2026, up from 5.0% in August but well below the 9.4% recorded a year earlier . The Bank of Ghana has maintained its policy rate at 14%, keeping a tight monetary stance even as market-determined T-bill rates have fallen well below the policy rate.
The 91-day yield of 4.61% remains below headline inflation, meaning investors in the shortest instrument are accepting a negative real return. This dynamic has persisted for weeks, with analysts attributing demand to liquidity conditions and limited alternatives rather than attractive returns.
Market Implications
The government’s decision to reject bids while missing its target underscores the balancing act facing the Treasury: it must raise sufficient funds to meet financing obligations while avoiding excessive borrowing costs. The rejection also suggests the government may be willing to tolerate shortfalls rather than accept what it considers unfavourable pricing.
Whether this strategy persists will depend on upcoming auctions and the government’s ability to meet its Q4 financing requirements through a combination of T-bill issuance and longer-dated instruments.
