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.