Demand for treasury bills surged as interest rates took another nose dive on the money market.

According to the Bank of Ghana auction results, the government secured nearly GH¢5 billion from the T-bills sale, about 33.8% oversubscription.

A chunk of the bids came from the 91-day bill. 

About GH¢3.825 billion, representing 77.7% were tendered. All the bids were accepted.

That of the 182-day bill was estimated at GH¢822.39 million. The uptake was also the same.

For the 364-day bill, GH¢272.62 million was tendered. All the bids were accepted.

Meanwhile, interest rates continued to nose-dived as the yield on the 91-day T-bill almost eased by 25 basis points to 25.0%.

The interest rate on the 182-day bill also decreased to 26.99% from 27.39% the previous week. 

But the yield on the 364-day bill remained relatively the same at 27.99%.

Most analysts believe the government will continue to borrow heavily from the treasury market to finance its expenditure.