https://www.myjoyonline.com/t-bills-government-records-marginal-oversubscription-but-interest-rates-hit-29-2/-------https://www.myjoyonline.com/t-bills-government-records-marginal-oversubscription-but-interest-rates-hit-29-2/

Government’s Treasury bills sale were marginally oversubscribed as interest rates hit 29.2%.

According to the results from the Bank of Ghana, the government received bids worth ¢2.29 billion, about 4.04% oversubscription.

The government had in March 2023 forced interest rates to go down to 18.0% in March 2023, but the rates have been surging since then, raising some concerns about the government’s domestic debt restructuring programme.

All the short-term financial instruments have gone up by more than 4.0% since they went down sharply from the high of 35% some three months ago.

According to this auction result, the 91-day T-bill recorded the biggest jump in interest rates, as the yield shot up by 1.27% to 22.97%.

For the 364-day T-bill, the yield went up by 0.34% to 29.25%.

That of the 182-day bill also went up to 25.44%, from 24.97% recorded the previous week.

Meanwhile, the 91-day bill recorded the biggest uptake of 81.7% of the total T-bills subscription.

About ¢1.879 billion was offered by the investors in which the government accepted ¢1.861 billion.

For the 182-day T-bills, the government secured ¢304.16 million.

About ¢115.7 million was tendered by the investors for the 364-day bill in which the government accepted ¢112.60 million.

Securities  Bids Tendered (GH¢)Bids Accepted (GH¢)
91 Day Bill1.879 billion1.861 billion
182 Day Bill304.16304.16 million
364-Day Bill115.74 million112.60 million
   
Total2.299 billion2.278 billion
Target2.202 billion 

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.