Treasury bill sales fell short of the ¢3.79 billion ambitious target set by government as interest rates hit 28.9% for the 364-day bill.

According to data from the Bank of Ghana, the auction of short-term securities went down by ¢771 million.

The government has been borrowing heavily on the money market since the beginning of 2023 because that market has become its only source of financing. However, it is coming with a higher cost.

According to the latest auction result, the government secured ¢3.018 billion from the short-term securities but accepted ¢3.015 billion.

The 91-day bill as usual received a chunk of the bids from the investors, representing about 79% of the total T-bills. About ¢2.398 billion were tendered, but the government accepted ¢2.394 billion.

For the 182-day bill, a little above ¢521 million were the bids submitted, which the government accepted.

The same thing happened to the one-year bill as the government accepted all the bids worth ¢99.79 million.

Meanwhile, interest rates continued to surge, raising concerns about the expected rise in domestic interest payment.

The 3-month bill went up by 0.43% to 21.69%, while the 182-day bill also shot up to 24.9%, from 23.95% the previous week.