T-bills auction: interest rates rise again; government records 6% oversubscription of auction

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T-bills auction: interest rates rise again; government records 6% oversubscription of auction
Rising Interest Rate

The recent auction of Treasury bills by the has recorded a slight oversubscription of 6.16%, with the government accepting GH¢1.85 billion compared to the targeted amount of GH¢1.76 billion.

The yield on the 91-day T-bill went up by 0.31% to 19.69%, while the 182-day T-bill increased to 22.24% from 21.85% in the previous week; the 364-day T-bill also surged to 26.95%.

The rising interest rates reflect the recent policy rate increase by the Central Bank, and some analysts have described it as not surprising given that the current rates do not match the prevailing macroeconomic condition.

The government accepted all the bids from the 91-day and 182-day T-bills, obtaining GH¢1.293 billion and GH¢ 422 million, respectively. However, it accepted only GHS140 million out of the GHS167 million tendered for the one-year bill.

The latest auction results come as the Central Bank implements measures to curb rising inflation, which is expected to average 37.6% in 2023, according to Solutions.

Securities Bids Tendered (GH¢) Bids Accepted (GH¢)
91 Day Bill 1.293 billion 1.293 billion
182 Day Bill 422.18 million 422.18 million
364 Day Bill 167.50 million 140.38 milion
     
Total 1.883 billion 1.855 billion
Targeted 1.767 billion  

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