The government plans to borrow GH¢3.89 billion in today’s treasury bill auction.

Last week, the government received bids worth GH¢5.97 billion, exceeding its target of GH¢5.54 billion. This represents an oversubscription of approximately GH¢420 million.

According to results published by the Bank of Ghana, the government accepted the full amount of GH¢5.97 billion against the GH¢5.54 billion target.

Out of GH¢4.95 billion in bids for the 91-day treasury bill, the government accepted GH¢4.58 billion.

For the 182-day bill, all GH¢890 million in bids were accepted, while GH¢499 million was accepted for the 364-day bill out of GH¢698 million in bids.

Analysts believe the oversubscription largely reflects an alignment between government issuance and market demand, driven by end-of-month government spending.

As expectations of a bond market reopening gain traction, analysts anticipate continued selective acceptance of bids and modest yield compression.

The 91-day yield dropped by 18 basis points to 14.92%, down from 15.10% the previous week.

The 182-day rate declined by 13 basis points to 15.55%, while the 364-day yield fell sharply by 78 basis points to 16.00%.

SSD/MA