For the first time in two months, Ghana’s Treasury recorded an oversubscription in its primary T-bill auction last week, with investor demand surging by 97.82 percent above the government’s target.

According to the latest data from the Bank of Ghana, the auction attracted total bids worth GHS 20.98 billion. Out of this, the Treasury accepted GHS 10.64 billion—more than enough to cover both its target of GHS 5.44 billion and the upcoming maturity of GHS 5.24 billion.

The strong demand signals renewed investor confidence in short-term government securities, following weeks of tepid performance in the T-bill market.

The data revealed that GHS 5.65 billion out of GHS 13.77 billion in bids for the 91-day bill were accepted. For the 182-day bill, GHS 2.99 billion was taken from GHS 4.22 billion in bids, while the 364-day bill recorded GHS 2.00 billion in accepted bids from a total of GHS 2.98 billion.

Market analysts link the strong investor demand to the recent steep reduction in interest rates on the Bank of Ghana’s policy instrument, the BoG Bills, which until recently yielded 27%. This substantial rate cut has prompted investors to redirect funds toward government short-term securities, which continue to offer comparatively attractive returns.

Yields on short-term securities nosedived. The 91-day yield dropped by 93 basis points to 13.72 percent, while the 182-day fell by 41 basis points to 14.61 percent from 15.02 percent. The 364-day yield also declined by 68 basis points to 14.73 percent.

Looking ahead, the government aims to raise GHS 7.70 billion at the next auction.