Government exceeded its Treasury bills sale by ¢43.34 million last Friday.
This signalled increasing investor interest in the short term government securities.
Government had targeted to raise a total of ¢876 million, but secured a little over ¢919 million.
It actually accepted GHS854 million of bids for the 91-day and ¢65.24 million for the 182-day Treasury bill. This indicates investor interest in government securities.
Government during the Covid-19 epic period and even until recently was not meeting its target for short and medium-term securities but, the recent surge in investor interest could also help bring down the yield on these instruments.
The interest rates have remained steady over the last couple of weeks as they are hovering around 14.15 percent.
Investors were earlier demanding more interest rate in the month of August 2020, when they were actually moving into other risk-free instruments that were giving them extra yield than the government treasuries.
Data from the Bank of Ghana indicates that the Government Treasury securities were priced at a rate of about 13.97 percent in the better part of the second quarter of this year.
September MPC Report
The Monetary Policy Committee Report also said interest rates on the money market saw mixed developments as rates on short to medium term instruments eased, but generally tightened at the longer-end in August this year.
On a year-on-year basis, the 91-day Treasury bill rate declined to about 14.0 percent in August 2020 from 14.7 percent a year ago.
Similarly, the interest rate on the 182-day instrument declined to 14.1
percent from 15.2 percent.
With the exception of the 6-year bond, yields on the 7-year, 10-year, 15-year, and 20-year bonds all increased.
Latest Stories
-
Yaw Nsarkoh: Bit by bit we will understand China
5 hours -
Looted and returned: Asante royal artefacts on display for public viewing at Manhyia Museum
5 hours -
Suspected killer in Kasoa land dispute shooting not a National Security operative
5 hours -
Ghana appoint four Para Athletics coaches in Preparation for Paris 2024
6 hours -
Kumasi Cheshire Home decries inadequate equipment; seeks public support
6 hours -
UCL: Niclas Fullkrug hands Dortmund first leg advange over PSG
7 hours -
GPL: Accra Lions beat Hearts of Oak to go third
8 hours -
Seek higher grounds as rains intensify – GMet warns
8 hours -
May Day: Sam Ankrah promises to prioritise welfare and well-being of workers if elected president
8 hours -
Bawumia plans door-to-door campaign for 2024 polls
9 hours -
GAF condemns ‘unprovoked’ fatal shooting of soldier in Kasoa land dispute
9 hours -
OSP’s request for money laundering probe against Cecilia Dapaah baseless – AG advises EOCO
9 hours -
Obofour Raphael releases ‘Asem Yi Di Ka’ EP
9 hours -
‘Operation Clean Your Surroundings’: Popular Kenkey joint and public toilets in Takoradi shut down
10 hours -
GFA boss Kurt Okraku graces Dreams FC’s dinner to celebrate CAF Confederation Cup exploits
10 hours