Latest data from the Bank of Ghana shows that the government surpassed its Treasury bill target, exceeding it by GHS 423.37 million after three consecutive weeks of undersubscription.

This represents an oversubscription of 7.63 per cent.

According to results published by the Central Bank, the government accepted a total of GHS 5.97 billion against a target of GHS 5.55 billion.

Out of GHS 4.95 billion in bids for the 91-day Treasury bill, the government accepted GHS 4.58 billion. For the 182-day bill, all GHS 890 million in bids were accepted, while GHS 499 million was accepted for the 364-day bill out of a GHS 698 million bid.

Analysts believe the oversubscription of Treasury bills largely reflects alignment between government issuance and market demand, driven by end-of-month government spending. As expectations of a bond market reopening gain traction, analysts expect continued selective acceptance of offers and modest yield compression.

However, interest rates continue to decline, averaging between 14% and 16%.

The 91-day yield dropped by 18 basis points to 14.92%, down from 15.10% the previous week. The 182-day rate fell sharply by 13 basis points to 15.55%, while the 364-day yield declined by 78 basis points to 16.00%.

Looking ahead, the government plans to raise GHS 3.89 billion in the next auction.