Treasury bill interest rates declined sharply across all tenors in the latest auction, reinforcing expectations of lower borrowing costs for businesses and households, while the government recorded strong investor demand that significantly exceeded its target.
Data released by the Bank of Ghana showed that the yield on the 91-day Treasury bill fell by 215 basis points to 6.45 percent, marking one of the steepest recent declines and signaling easing liquidity conditions in the financial market.
Similarly, the 182-day bill rate dropped to 8.18 percent, down from 10.67 percent, while the 364-day bill yield declined by 86 basis points to 12.93 percent, continuing the downward trend across the yield curve.
The sustained drop in yields is expected to reduce the government’s borrowing costs and potentially translate into lower lending rates by commercial banks, providing support for private sector growth and overall economic expansion.
Strong investor demand drives oversubscription
Investor appetite remained robust, with total bids reaching GH¢25.20 billion, representing an oversubscription of about 170 percent compared to the government’s target of GH¢9.32 billion.
Despite the strong demand, the Treasury accepted GH¢11.40 billion in bids, slightly above its original target.
The 364-day bill emerged as the most sought-after instrument, attracting bids of GH¢9.38 billion, of which GH¢5.78 billion was accepted.
The 91-day bill received GH¢8.61 billion in bids, with GH¢3.19 billion accepted, while the 182-day bill attracted GH¢7.22 billion, out of which GH¢2.45 billion was taken up.
The continued oversubscription and falling yields highlight growing investor confidence in government securities and improving macroeconomic conditions, as easing rates create fiscal space and support broader economic recovery.
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