T-bills Auction: Government Achieves 25% Oversubscription; Interest Rates Up For 5th Month Running

Interest rates surged for the 5th month running despite government recording 25.7% oversubscription of treasury bills auction.

According to auction results from the Bank of Ghana, total bids tendered for the short term securities were estimated at about ¢3.25 billion.

The government however accepted about ¢3.09 billion of the total bids.

According to the figures from the Central Bank, ¢2.143 billion of the total bids came from the 91-day bill, but the government accepted 2.114 billion.

For the 182-day bill, the bids tendered were estimated at ¢674.64 million.

However, the government accepted about ¢548.72 million.

All of the ¢433.28 million offered for 364-day bill were accepted by the government.

Meanwhile, interest rates on the 364-day bill shot up by 0.33% to 32.50%.

The 91-day bill also went up to 28.50% from the 28.12% the previous week. That of the 182-day bill also reached 30.67%, from 29.93% previously.

SECURITIES BIDS TENDERED (GH¢) BIDS ACCEPTED (GH¢)
91-Day Bill 2.143 billion 2.114 billion
182-Day Bill 674.64 million 548.72 million
364-Day Bill 433.28 433.28
Total 3.251 billion 3.096 billion
Target 2.585 billion

 

Source: Myjoyonline