Government borrowing on the money market continued to shoot up significantly, as it accepted 99.9% of the bids tendered by the investors for the just-ended Treasury bills auction.
The sale of the short-term securities was also oversubscribed by about 40% of the targeted amount of ¢1.834 billion, but once again the cost of borrowing has become a concern to many analysts and market watchers.
According to the auction by the Bank of Ghana, the government accepted a significant ¢2.56 billion from the bids submitted by the investors, largely the banks.
Yet again, majority of the bids came from the 91-day T-bills as ¢1.62 billion were tendered. All the bids were consequently accepted.
Also, almost all the ¢380.75 million of bids submitted for the 182-days T-bills were accepted.
Again, the ¢380 million bids submitted for the 364-day bill were taken.
Presently, the treasury market is the only source of borrowing for the government, a situation which has compelled the treasury to increase the borrowed amount despite the high-interest rates.
Meanwhile, interest rates continued to surge on the money market.
Whilst, the yield on the 91-day T-bill went up to 20.25%, from 19.94% that of the 182-day bill also inched up by 0.11% to 22.82%.
The rate for the 364-day bill stood at 27.36%.
| Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) |
| 91 Day Bill | 1.629 billion | 1.629 billion |
| 182 Day Bill | 557.92 million | 557.90 million |
| 364 Day Bill | 380.75 million | 380.75 million |
| Total | 2.567 billion | 2.567 billion |
| Targeted | 1.834 billion | 1.834 billion |