Investors' confidence rebounded slightly in the treasury market as the government recorded a marginal oversubscription of treasury bills.

At the same time, the yields went down marginally.

This is coming after the government failed to meet its target for three consecutive weeks.

The government got GH¢6.67 billion from the T-bills auction but accepted GH¢6.74 billion of the bids tendered

Databank Research said the Treasury’s higher acceptance rate signals improving alignment between investor demand and yield expectations

It added that this shift may reflect market confidence in the current rate levels.

“With upcoming weekly maturities averaging GH¢6.0 billion, continued issuance at near-target volumes could support funding needs without upward pressure on yields. We expect this dynamic to result in modest yield compression in the coming weeks”, it mentioned.

Last week, the Treasury’s issuance appetite improved, accepting 98% of investor bids totalling GH¢6.74 billion out of GH¢6.87 billion tendered. The amount raised exceeded the GH¢6.68 billion target and adequately covered upcoming maturities of GH¢6.43 billion.

Yields on the 91-day, 182-day, and 364-day bills declined modestly by 20 basis points, 29 basis points and 18 basis points week-on-week to settle at 15.45%, 16.21% and 18.65%, respectively.