Ethiopia Plans 197.2 Billion Birr T-Bill Sale as Yields Fall Below 10 Percent

July 27, 2026
By Mintesinot Nigussie

Ethiopia’s government is set to issue 197.2 billion birr in Treasury bills during the first quarter of the 2026/27 fiscal year as borrowing costs continue to ease following a decline in short-term interest rates, as reported by Capital Newspaper. The Ministry of Finance’s issuance calendar shows that the government will conduct seven T-bill auctions between July 8 and September 30, 2026, covering maturities ranging from 28 days to one year. The largest planned auction, scheduled for August 5, will offer 40 billion birr in securities.

The first auction of the fiscal year, held on July 8, raised 30.71 billion birr at an average yield of 9.2 percent, marking a return to single-digit T-bill rates after a prolonged period of higher borrowing costs. The planned issuance is weighted towards longer-term securities, with 78.9 billion birr allocated to 364-day T-bills and 59.15 billion birr assigned to 182-day bills. The government also plans to issue 39 billion birr through 91-day securities and 19.72 billion birr through 28-day bills.

T-bill yields had been declining throughout the previous fiscal year, with the average rate reaching 11.7 percent by the end of the 2025/26 budget year before falling further in the opening auction of the new fiscal year. The decline comes as the National Bank of Ethiopia advances reforms aimed at shifting monetary policy away from direct controls towards a market-based framework. Under the new approach, short-term interest rates and liquidity conditions are expected to play a greater role in influencing financial conditions through instruments such as repurchase operations.

Source: FSX Business News