T-bills: 91-day, 364-day yields to trade slightly higher in second half of 2026
The 91-day bill is expected to trade within 5.5%-7.5% in the second half of 2026, while the 364-day bill would trade within 12.5%-14.0%. According to Databank Research, its outlook reflects the competing effects of the Treasury’s cost-containment strategy and higher funding requirements linked to upcoming obligations. It said in its 2026 Half-Year Report that active […]
In the second half of 2026, the yields on 91-day and 364-day Treasury bills are expected to see a slight increase, according to Databank Research. The 91-day bill is forecasted to trade within 5.5%-7.5%, while the 364-day bill's yield will range from 12.5%-14.0%. This outlook is influenced by the Treasury's cost-containment strategy and heightened funding requirements for upcoming obligations.
Despite active yield management aimed at preventing sharp price movements, rising financing needs are likely to maintain moderate upward pressure on rates throughout this period.
As of now, yields on the 91-day and 364-day bills stand at 4.9% and 10%, respectively. The research firm anticipates robust domestic liquidity conditions in the second half of 2026, driven by the GH¢10.8 billion Domestic Debt Exchange Programme (DDEP) coupon payment slated for August 2026, which will initially boost market liquidity.
Reinvestment by banks, pension funds, and collective investment schemes is expected to sustain demand for government securities, supporting auction coverage and secondary-market activity, particularly in the third quarter of 2026.
However, the impact may wane later in the year as increased sovereign and corporate issuances absorb excess liquidity. The Treasury plans to advance its return to the domestic bond market through targeted medium- and long-term issuances, which will bolster yield-curve development and lessen reliance on short-dated T-bills. This strategy will be bolstered by planned debt-reprofiling and bond-buyback operations aimed at retiring high-cost obligations and smoothening the maturity profile.
The government will continue to build its Sinking Fund, aiming for GH¢30 billion by year-end, and fortify buffers ahead of substantial DDEP maturities in 2027. Investor demand remained strong in the first half of 2026, with total bids surging 94.1% year-on-year to GH¢234.86 billion. The average target-cover and bid-to-cover ratios of 1.10x and 1.39x, respectively, indicated robust auction demand despite occasional dips in participation.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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