Short-term bills issued by the Bank of Ghana are increasingly attracting commercial banks, reshaping demand in Ghana’s fixed-income market and contributing to weaker uptake of government Treasury bills.
Market data since March 2026 shows a clear shift in investor behaviour, with banks favouring the central bank’s shorter-dated instruments over traditional T-bills issued by government.
Unlike Treasury bills—which come in 91-, 182-, and 364-day tenors—BoG bills are typically issued for just 14 or 56 days. This shorter maturity profile is proving attractive in a declining interest rate environment, allowing banks to reinvest quickly and manage liquidity more dynamically.
In addition, BoG bills are often priced competitively to support liquidity sterilisation, occasionally offering better short-term returns on a risk-adjusted basis. Combined with flexible issuance—sometimes multiple times per week—this has made them a preferred option for banks seeking both yield and liquidity.
The impact is showing up in Treasury bill auctions. Government has repeatedly fallen short of its borrowing targets, even in cases where total bids were relatively strong. Demand has become concentrated in the shortest tenor, with investors avoiding longer commitments amid uncertainty.
Analysts say the growing appeal of BoG bills reflects a broader shift in market strategy, with banks prioritising flexibility over locking in returns. At the same time, falling yields on T-bills and increased diversification into other assets, including loans and bonds, are also weighing on demand.
While BoG bills are not solely responsible for the trend, their rising prominence highlights the evolving nature of Ghana’s financial markets—where liquidity management, rather than just yield, is becoming the dominant driver of investment decisions.
By: Toma Imirhe / businesspostonline
