Interest rates rose marginally again as government recorded a slight oversubscription of its Treasury bills sale.

According to the latest auction by the Bank of Ghana, the rising rates is in tandem with the recent policy rate increase by the Central Bank.

The auction results showed that the yield on the 91-day T-bill went up by 0.31% to 19.69%, whilst that of the 182-day T bill increased to 22.24%, from 21.85% the previous week. The rate on the 364-day T-bill also surged to 26.95%.

Some analysts have described the recent increase in the interest rates on the treasury market as not surprising because the current rates do not match the prevailing macroeconomic condition. The policy rate is presently going for 29.5%, whilst average lending rates hover around 38%.

Meanwhile, the government recorded a marginal 6.16% oversubscription of the T-bills sale to the tune of ¢1.88 billion.

It however accepted ¢1.85 billion, more than the targeted amount of ¢1.76 billion. Chunk of the bids came from the 91-day T-bill.

The government accepted all the bids from the 91-day and 182-day T-bills. ¢1.293 billion and ¢422 million were obtained from these instruments.

However, it accepted ¢140 million out of the ¢167 million tendered for the one-year bill.