The government has bounced back from weeks of weak demand in the Treasury bill market, exceeding its latest target by GHS 423.37 million, according to fresh data from the Bank of Ghana.
This marks a 7.63% oversubscription after three consecutive weeks of falling short. The government raised a total of GHS 5.97 billion, surpassing its target of GHS 5.55 billion.
The breakdown of the bids shows strong interest across short-term instruments. Out of GHS 4.95 billion in bids for the 91-day bill, the government accepted GHS 4.58 billion.
All GHS 890 million submitted for the 182-day bill were accepted, while GHS 499 million out of GHS 698 million was accepted for the 364-day instrument.
Market analysts attribute the oversubscription to better alignment between government issuances and investor appetite, likely influenced by end-of-month public sector spending.
With talks of a bond market reopening gaining steam, experts anticipate continued selective offer acceptance and modest yield drops.
Despite the strong demand, interest rates continue to slide. The 91-day yield fell to 14.92%, down 18 basis points from the previous week’s 15.10%. The 182-day rate also dipped by 13 basis points to 15.55%, while the 364-day yield saw a steeper drop of 78 basis points to 16.00%.
