The money market maintained its positive momentum, recording heightened investor demand following the Bank of Ghana’s 250 basis point cut in the policy rate to 15.50 percent.

The stronger appetite for government securities drove a further decline in Treasury bill yields, while total bids exceeded the government’s GH¢6.99 billion target by GH¢5.30 billion.

Data from the Bank of Ghana show that total bids for the 91-day, 182-day,364-day, and 364-day Treasury bills reached GH¢17.1 billion, of which GH¢12.31 billion was accepted. For the second consecutive week, the 364-day bill recorded the strongest demand, with GH¢6.54 billion tendered and GH¢5.97 billion accepted.

The 91-day bill saw GH¢2.79 billion accepted out of a tender of GH¢5.91 billion. In parallel, the 182-day bill attracted GH¢4.65 billion in bids, of which GH¢3.55 billion was taken up.

On a week-by-week basis, the 91-day bill yield declined by 37 basis points to 10.82 percent, from 11.19 percent. The 182-day bill fell by 28 basis points to 12.38 percent, from 12.66 percent, while the 364-day bill eased by 24 basis points to 12.82 percent, from 12.98 percent.

Analysts attribute the sharp decline in yields to the recent policy rate cut, which has repositioned Treasury bill yields to remain relatively competitive.

In addition, improved system liquidity, stemming from the central bank’s easing stance, has lifted money supply relative to demand and placed downward pressure on yields across the curve.

For this week’s auction, the Treasury’s issuance target stands at GH¢4.98 billion, which is likely to be fully absorbed given the prevailing market momentum.