T-Bills auction: Interest rates hit 33.01%; government records 24.5% oversubscription

Interest rates shot up on the money market to hit 33.01%.

This is coming despite the government recording a 24.5% oversubscription of Treasury bill sales at a lower target.

According to the auction results from the Bank of Ghana, all the rates across the yield curve increased.

Whilst the 364-day T-bill reached 33.01% from 32.85% the preceding week, that of the 182-day bill inched up to 31.21% as against 30.67% previously.

The yield on the 91-day also went up by 0.69% to 29.19%.

Analysts and market watchers are worried about the increasing domestic debt.

Meanwhile, the bids tendered for the 91-day bill were higher than the targeted amount of ¢2.109 billion.

About ¢2.170 billion were offered for the short-term security, but the government accepted ¢2.155 billion cedis.

For the 182-day bill, about ¢375.3 million were tendered, but the government accepted ¢353.35 million of the bids.

With regard to the 364-day bill, the government took ¢67.46 million of the ¢80.17 million tendered.

Source: Ghana News