T-bills oversubscribed by almost 30% as govt generates GH¢2.53bn

 

The Treasury market saw its fourth consecutive week of rising interest rates as the government sought more funds to cover its short-term liabilities.

According to the Bank of Ghana’s latest auction, rates increased across the yield curve.

The 91-day T-bill rose by 0.07% to 19.96%, while the 182-day bill increased by 0.10% to 22.57%.

The one-year bill also rose to 27.26% from the previous week’s 26.90%.

Meanwhile, the government secured GH¢2.53 billion from the sale of short-term instruments, which was an oversubscription of approximately 29.6% of the targeted amount of GH¢1.958 billion.

Some analysts fear that the rising interest rates may impede the government’s efforts to reduce deficit financing in the coming years.

At the auction, the majority of bids, totalling GH¢2.048 billion, were placed on the 91-day T-bill, and all were accepted for the second week in a row.

Commercial banks mainly submitted the GH¢346.60 million bids received for the 182-day bill, but only GH¢339.54 million were accepted.

Finally, the 364-day bill had GH¢143.21 million in bids accepted.

 

SOURCE: CITINEWSROOM

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