Government recorded about 6.4% oversubscription of its treasury bills target of ¢2.63 billion but an increasing cost.

According to figures from the Bank of Ghana, interest rates surged for the eighth-week running, raising concerns about the government’s debt management strategy, aimed at cutting Ghana’s debt.

The government has been borrowing heavily on the money market since the beginning of 2023 but at a higher cost. This is because it is the only source of borrowing.

The rising interest rates are expected to keep high the domestic interest payments of the government.

The figures from the Bank of Ghana indicate that the yield on the 91-day T-bill went up by 0.11% to 21.26%. That of the 182-day bill also shot up but marginally to 23.95%, from 23.93% the previous week. The rate for the one-year bill was however 27.82%.

Meanwhile, the government got about ¢2.80 billion from the sale of short-term instruments.

A little above ¢1.50 billion was tendered for the 91-day bill in which all was accepted.

Similarly, about ¢982 million were offered for the 6-month bill. All the bids were subsequently accepted.

Again, the ¢308 million tendered for the one year bill were accepted.