Demand for government Treasury bills remains strong, with the latest auction data from the Bank of Ghana (BoG) showing investors continuing to outpace the state’s borrowing target.

The auction attracted GH¢22.67 billion in total bids against a target of GH¢6.42 billion, resulting in a 253 percent oversubscription — marginally higher than the previous week’s 246 percent.

Despite the heavy demand, the government accepted GH¢8.99 billion across the 91-day, 182-day, and 364-day tenors.

For the 91-day bill, GH¢3.41 billion was taken from GH¢7.64 billion tendered.

The 182-day instrument saw GH¢2.09 billion accepted out of GH¢7.27 billion, while GH¢3.49 billion was allotted from GH¢7.76 billion offered for the 364-day bill.

With liquidity remaining elevated, yields declined across all maturities.

The 91-day rate fell by 136 basis points to 8.60 percent from 9.96 percent. The 182-day yield dropped by 114 basis points to 10.67 percent from 11.81 percent, and the 364-day bill eased by 100 basis points to 11.06 percent from 12.06 percent.

Market analysts attribute the falling yields not only to ample liquidity but also to competitive bidding and earlier bid rejections, which are encouraging investors to quote lower rates to improve their chances of allocation.

For the next auction, the government has set a higher target of GH¢9.32 billion, underscoring its continued dependence on the short-term domestic debt market for financing.