Government’s new four-year Treasury bond has attracted strong investor demand, with investors submitting GH¢4.46 billion in bids at the latest auction as the government sought to raise funds from the domestic debt market.
The government accepted GH¢3.15 billion of the bids, representing 70.57% of the total amount tendered, while the auction recorded a bid-to-cover ratio of 1.41 times.
The bond cleared at a yield of 12.00%, at the lower end of the pre-auction market expectation of between 12.00% and 13.50%.
The latest Bank of Ghana auction results indicate that the clearing yield was about 130 basis points above the post-Domestic Debt Exchange Programme (DDEP) four-year secondary market reference rate of approximately 10.7%.
However, it was 50 basis points below the 12.50% yield on the seven-year government bond issued in March/April 2026, pointing to continued investor appetite for medium-term government securities.
The cedi-denominated bond, expected to mature in 2030, opened on September 1, 2026, through a book-building process and was primarily marketed to resident investors. However, non-residents were also eligible to participate.
The bond is expected to be listed on the Ghana Stock Exchange, with Absa Bank, CalBank, Fincap Securities, GCB Bank, OA Capital and Stanbic Bank serving as active bond specialists.
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