T-Bills auction: Interest rates rise marginally; government records 21% oversubscription

Audio By Carbonatix

Interest rates rose marginally on the Treasury market as government secured more than 21.43% from its latest Treasury bills sale.

The increase in interest rates was expected due to the hike in the policy rate of the Bank of Ghana to 29.5%.

Interest rates inched up as the Central Bank increased its base lending rate to banks last Monday, March 27, 2023, to check the high inflation.

However, some market watchers argue that the cost of borrowing which is lower than the yield on Treasury bills could force investors to prioritize foreign currency investments.

Both the 91-day and 182-day T-bills went up marginally by 0.51 and 0.42 percentage points to 19.38% and 21.85% respectively.

Meanwhile, the government obtained ֯¢1.62 billion from the T-bills auction.

About ¢1.25 billion of the bids came from the 91-day bills, with about ¢1.24 billion accepted.

For the 182-day T-bill, the bids were estimated at about ¢367 million. A little above ¢355 million cedis were however accepted.

Securities	Bids Tendered (GH¢)	Bids Accepted (GH¢)
91-day	1.257 billion	1.244 billion
182-day	367.70 million	355.13 million


Total	1.624 billion	1.599
Targeted	¢1.338 billion

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

Tags: