In a notable trend, interest rates in Ghana witnessed a third consecutive weekly decline, propelled by a significant surge in demand for Treasury bills on the money market.
Auction results released by the Bank of Ghana reveal a robust response from investors, with the government achieving nearly 40% oversubscription of the T-bills sale.
The interest rate on the 91-day Treasury bill experienced a marginal drop, decreasing from 29.74% to 29.49% compared to the previous week.
Similarly, the 182-day bill saw a decrease in its interest rate, down to 31.75% from the previous week's 31.87%.
The 364-day bill also recorded a decline in interest rates, settling at 33.23% from the previous 33.46%.
The government's T-bill sale proved to be successful, attracting a total of ¢5.008 billion, surpassing the targeted amount by ¢1.42 billion.
However, the government accepted ¢4.927 billion of the total bids tendered.
Breaking down the contributions, the 91-day T-bill accounted for ¢3.307 billion, representing a substantial 66.04% of the total transaction.
Following closely was the 364-day bill, with all ¢1.323 billion tendered by investors, predominantly banks, being accepted.
For the 182-day bill, ¢377.05 million were tendered, and ¢375.89 million were accepted, reflecting the continued high demand in the market.
The positive response to the T-bill auction not only signals increased investor confidence but also provides the government with a more favourable borrowing environment.
This trend suggests a potential easing of financial pressures as the government successfully navigates the money market.
Security | Bids Tendered (GH¢) | Bids Accepted (GH¢) |
---|---|---|
91-Day Bill | 3.307 billion | 3.277 billion |
182-Day Bill | 377.05 million | 375.89 million |
364-Day Bill | 1.323 billion | 1.323 billion |
Total | 5.008 billion | 4.927 billion |
Target | 3.587 billion |