The positive outcome on the treasury market has continued, as the government, in its Auction 1937 last Friday, raised over GHC 8 billion, representing a 55.4% oversubscription of the approximately GHC 5.2 billion target.

The government accepted all tenders received, comprising GHC 5.5 billion worth of 91-day bills, GHC 1.42 billion worth of 182-day bills, and GHC 1.14 billion worth of 364-day bills.

However, the cost of borrowing has continued its upward trend, as the Ghana Statistical Service last week disclosed that interest rates had risen for the fourth consecutive month, with the government significantly missing its end-of-year target.

The 91-day bills have now surpassed the 28% mark, selling at an average rate of 28.3385%, while the 182-day bills are edging closer to the 30% mark, with an average sale cost of 28.9642%. The 364-day bills sold at an average rate of 30.1762%.

Despite these high rates, the recent rebound and growing demand for longer-term bills could signal market expectations of a dip in rates in the coming weeks.

Meanwhile, for Auction 1938, the government has once again revised its target upward, seeking to raise GHC 6.353 billion on the treasury market.