Interest rates are expected to trickle down further in the coming weeks.

This follows the government’s yield control strategy to anchor market expectations, curb aggressive rate demands, and ultimately reduce borrowing costs, thereby guiding the yield curve towards normalisation.

According to analysts, if the Treasury considers re-tapping longer-dated securities at a premium in the near future, this move could enhance demand.

Looking ahead, they expect the ongoing bid rejections to lead to further yield compression in the coming weeks.

Investor appetite for treasury bills remained strong last week, but the government held firm on rates, rejecting GH¢2.64 billion of the GH¢10.29 billion in bids and accepting GH¢7.65 billion.

The target was GH¢7.26 billion and maturities of GH¢9.06 billion respectively.

Only the 91-day and 182-day bills were issued, with yields declining by 43 basis points and 21 basis points to 27.98% and 28.69%, week-on-week respectively.

Analysts believe the Treasury's yield control strategy seeks to anchor market expectations, curb aggressive rate demands, and ultimately reduce borrowing costs, thereby guiding the yield curve towards normalisation.