Demand for Ghana’s short-term government securities rebounded sharply at the latest Treasury bill auction, as investors shifted toward safer assets amid ongoing volatility in financial markets.
Total bids surged to 7.83 billion cedis (US$522 million), significantly exceeding the government’s 4.35 billion cedi target by 80.04 percent. The strong uptake marked the first oversubscription in seven consecutive weeks, signalling renewed appetite for short-term sovereign paper.
The government ultimately accepted 6.09 billion cedis (US$406 million), reflecting a bid-to-cover ratio of 1.29 times and a coverage ratio of 1.40 times relative to the auction target.
Yield movements across the Treasury bill curve were mixed, reflecting varied investor positioning along different maturities.
The 91-day bill yield eased by 4 basis points to 4.88 percent, while the 364-day yield declined by 7 basis points to 10.12 percent. In contrast, the 182-day yield edged higher by 7 basis points to 7.04 percent.
Market analysts attribute the rebound in demand to a broader “flight to safety” as investors reposition portfolios following a recent sell-off in equities and heightened uncertainty across risk assets.
The short-end of the curve, particularly the 91-day instrument, continued to attract the strongest demand, reflecting investor preference for liquidity and lower duration risk.
Looking ahead, analysts expect participation in upcoming auctions to remain solid, though yield movements are likely to stay uneven across maturities as market conditions adjust.
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Demand is expected to remain skewed toward shorter tenors, with limited incentive for investors to extend duration into the 364-day bill given relatively narrow term premiums.
The government is scheduled to return to the market on Friday, May 15, 2026, with a new Treasury bill auction targeting 4.30 billion cedis (US$287 million).
The issuance will comprise 91-day, 182-day and 364-day bills, aimed at refinancing 4.18 billion cedis (US$279 million) in maturing obligations.
The upcoming auction will be closely watched for signals on investor sentiment ahead of the next monetary policy direction from the Bank of Ghana, as well as broader liquidity conditions in the domestic money market.
Despite short-term fluctuations, Ghana’s Treasury bill market has remained a key funding channel for government operations, with investor demand continuing to reflect both risk appetite and macroeconomic expectations.
