ACCRA, Ghana — Investor demand for Ghanaian Treasury bills surged for a third consecutive week, defying declining yields and signaling renewed confidence in short-term government securities.
The Bank of Ghana reported that its latest auction attracted GH¢6.8 billion in bids—75.8% more than the government’s GH¢3.9 billion target—with authorities accepting GH¢5.5 billion. The auction included 91-day, 182-day, and 364-day bills, with the bulk of the activity concentrated in the shortest tenor.
“There’s clear appetite for short-term instruments as investors seek to lock in returns while hedging against future rate volatility,” said a market analyst at a local investment firm to Accra Street Journal.
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Of the total bids:
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GH¢4.7 billion came from the 91-day bill,
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GH¢1.2 billion from the 182-day bill,
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GH¢774 million from the 364-day bill.
Despite the oversubscription, yields continued to fall:
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The 91-day bill declined from 10.84% to 10.29%,
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The 182-day bill fell from 13.23% to 12.36%,
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The 364-day bill dropped from 14.31% to 13.25%.
The lower borrowing cost comes at a time when Ghana is attempting to reduce its debt accumulation rate and consolidate macroeconomic gains following inflationary and fiscal pressures in prior years.
Lower Yields, Higher Confidence
Analysts suggest the falling rates reflect strong liquidity conditions, positive inflation trends, and improved fiscal sentiment.
Moreover, falling Treasury yields have contributed to a drop in the Ghana Reference Rate (GRR), the benchmark for lending in the country, offering hope for lower commercial lending rates in the near term.
“When T-Bill yields drop and demand remains high, it sends a signal that investors are pricing in economic stability or expect further monetary easing,” said an economist familiar with Ghana’s debt market to a writer at Accra Street Journal
Eyes on the Next Auction
The government now eyes a GH¢8.6 billion target in its upcoming auction—a significant increase from the current round. Whether investor appetite will persist, and if yields will stabilize or rebound, remains to be seen.
“This week will test whether demand is sustained or if the market has simply surged temporarily on improved sentiment,” a senior banker commented
Last Updated on August 4, 2025 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
