Treasury bills maintained strong momentum last week, as robust investor demand pushed government borrowing GH¢2.91 billion above target. This is the eighth straight week of oversubscription, highlighting sustained investor confidence and a strong appetite for short-term government securities.

Latest Data from the Bank of Ghana show that investors placed GH¢10.08 billion (Ten billion and eight million Ghana cedis )in bids for the 91-day, 182-day and 364-day Treasury bills. Out of this amount, the government accepted GH¢10.05 billion, translating into an oversubscription rate of 41.09 per cent.

The 91-day Treasury bill remained the most popular instrument, attracting bids worth GH¢2.75 billion, with GH¢2.74 billion accepted.

The 182-day bill recorded demand of GH¢2.71 billion, out of which GH¢2.70 billion was taken up. Meanwhile, the 364-day bill drew bids amounting to GH¢4.61 billion, with GH¢4.60 billion accepted by the government.

Market analysts attribute the trend mainly to improved liquidity conditions, driven by the central bank’s easing cycle and the introduction of the 14-day bill, which have collectively boosted liquidity across the market.

Interest rates rose across all maturities, reinforcing the attractiveness of Treasury bills to investors.

The yield on the 91-day bill increased by 2 basis points to 11.19 per cent, up from 11.17 per cent the previous week. The 182-day bill edged up by 3 basis points to 12.64 per cent, compared to 12.61 per cent previously. The 364-day bill recorded the sharpest increase, climbing 8 basis points to 12.98 per cent from 12.90 per cent.

Looking ahead, the Treasury aims to raise GH¢9.82 billion at its next auction across the three short-term instruments, as it seeks to capitalise on strong market appetite to meet its financing requirements.