Interest rates remarkably fell significantly within just a week, following the government’s decision to reject bids with higher yields.

According to the latest auction by the Bank of Ghana, the 91-day yield fell once again to 19.04% from 24.16% last week.

From a high of 35% a week ago, interest rates on the short term securities have dipped significantly on the yield curve.

Whilst the 91-day bill yield has fallen by 16%, that of the 182-day bill has plunged by about 13%, going for 22.84%.

The 364-day bill has also dropped by about 9% to 26.82% on Friday March 10, 2023.

The significant fall of the yield of the T-bills means government will further save interest costs.

Last week, government saved about ¢220 million from the reduction in T-bills yields.

Analysts and market watchers expect the rates to come down in the coming weeks.

Government secures ¢4.20bn from T-bills

Meanwhile, the government got about ¢4.20 billion from the sale of T-bills, about 74% oversubscription of the targeted amount of ¢2.417 billion.

It however accepted ¢3.31 billion of the total bids.

About ¢1.99 billion came from the 91-day T-bill, whilst the bids for the 182-day T-bill was estimated at ¢1.16 billion. Government however accepted ¢1.43 billion and ¢924 million for the 3-months and 6-months bills.

For the 364-day bill, government secured ¢1.05 billion, with the government accepting ¢959 million of the total bids.