The Government of Ghana has surpassed its latest Treasury bill auction target, marking a strong rebound in investor interest after three consecutive weeks of undersubscription.

According to the Bank of Ghana, the government raised a total of GHS 5.97 billion in the most recent auction, exceeding its target of GHS 5.55 billion by GHS 423.37 million—an oversubscription rate of 7.63%.

The breakdown of bids shows sustained investor appetite across all tenors. The 91-day bill attracted the most attention, with GHS 4.95 billion in bids, of which GHS 4.58 billion was accepted. For the 182-day bill, all GHS 890 million in bids were accepted. Meanwhile, the 364-day bill saw GHS 698 million in bids, with the government accepting GHS 499 million.

Analysts attribute the renewed interest in short-term government securities to improved alignment between Treasury issuance and market demand, particularly in anticipation of end-of-month government spending obligations. They also suggest that expectations surrounding a possible reopening of the bond market may be influencing investor behavior.

Despite the oversubscription, interest rates on Treasury bills continue to trend downward, signaling increased confidence in short-term government debt and reduced investor risk appetite.

The 91-day yield declined by 18 basis points to 14.92%, down from 15.10% the previous week. The 182-day yield fell to 15.55%, a drop of 13 basis points, while the 364-day bill saw the sharpest decline, falling by 78 basis points to 16.00%.

Looking ahead, the government is targeting GHS 3.89 billion in the next auction, as it seeks to sustain momentum in the domestic debt market.

Market watchers expect the government to maintain a cautious approach, selectively accepting bids to manage yields while ensuring liquidity to meet its short-term financing needs.