Surging investor appetite for treasury bills has driven interest rates to new lows, with the 91-day bill dropping sharply to 17.71%, according to the latest auction results from the Bank of Ghana.

The decline in rates follows an oversubscription of government’s T-bill issuance, with total bids reaching GH¢10.30 billion—far exceeding the GH¢5.73 billion target. However, the Treasury accepted only GH¢6.22 billion, rejecting GH¢4.56 billion worth of bids.

The 91-day bill saw the biggest interest, attracting bids worth GH¢6.009 billion, with GH¢4.43 billion accepted. The 182-day bill recorded bids of GH¢2.89 billion, but only GH¢842 million was taken. Meanwhile, the one-year bill had bids totaling GH¢1.404 billion, out of which GH¢947 million was accepted.

Interest rates on all tenors declined significantly, with the 182-day bill falling to 18.96% from 22.98% the previous week. The yield on the 364-day bill also dipped to 19.98%, marking a 271-basis point drop.

This sharp decline in rates is a major win for the government as it reduces domestic interest payments, easing pressure on public finances.

With investors continuing to favor treasury bills, market watchers anticipate further rate adjustments in the coming weeks.