Barley a day after the issuance of the 6-year bond was oversubscribed by 24%, the weekly Treasury bills sale to domestic investors, however, fell short of its target by about 8.8%.
The slight reduction in the sale of the short term instruments may largely be due to government’s position of keeping interest yields lower in order to reduce the cost of servicing the debt instruments, going forward.
Indeed, the interest costs fell by 100 basis points the previous week’s trading to 12.45% and 13.21% respectively for the 91-day and 182-day T Bills.
Though the economy continues to expand, following easing of Covid-19 restrictions, there appears to be some challenges in the fiscal economy.
This comes after international ratings agency, Moody’s, last week reviewed Ghana’s ratings to B3 and outlook negative. It attributed the ratings to high debt burden, liquidity challenges, among others. Nonetheless, there is still some interest in financial instruments, because investors largely banks perceived the government instrument as risk free.
According to the trading figures, government mobilised ¢1.25 billion from the sale of the short term instruments.
For the first time in a long time, the 182-day was subscribed more than the 3-months bill.
Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
91 Day Bill | 551.76 million | 551.76 million | 12.45% |
182 Day Bill | 707.13 million | 701.86 million | 13.21% |
Total | 1.258 billion | 1.253 billion | |
Target | 1.380 billion |
Latest Stories
-
2024 poll: Don’t vote for Mahama; he has nothing new to offer – Afenyo-Markin
9 mins -
Saglemi Housing Project: Government promises transparency in divestiture
29 mins -
I don’t want to deceive myself as a politician – Alan Kyerematen
37 mins -
We will continue to provide more financing for Ghana despite not reaching agreement with Eurobond holders – IMF
50 mins -
Economic outlook for Sub-Saharan Africa including Ghana gradually improving – IMF
1 hour -
Ghana’s inflation to average 11.5% in 2025; policy rate expected to reduce sharply – IMF
2 hours -
Let’s prioritize research quality in higher education institutions for industrial growth-Prof. Nathaniel Boso
9 hours -
Herman Suede is set to release ‘How Dare You’ on April 24
13 hours -
Heal KATH: Kuapa Kokoo, Association of Garages donate 120k to support project
13 hours -
KNUST signs MOU with Valco Trust Fund, Bekwai Municipal Hospital to build student hostel
13 hours -
The influence Ronaldo has on people, Cadman Yamoah will have same on the next generation – Coach Goodwin
14 hours -
Gender Advocate Emelia Naa Ayeley Aryee Wins prestigious Merck Foundation Awards
15 hours -
South Africa bursary scandal suspects granted bail
15 hours -
Ecobank successfully repays $500m Eurobond due April 18
15 hours -
Re: Doe Adjaho, Torgbui Samlafo IV, call for Unity among Paramountcies in Anlo
15 hours