T-bills auction: Government records 37.3% oversubscription; interest rates still high

Government recorded a 37.3% oversubscription of Treasury bills sale for the second week running, as the short term securities market remain the only source of borrowing.

However, interest rates still remain high at about 35%.

According to the auction results, government secured a total of ¢1.95 billion from the 91-day and 182-day T-bills.

Majority of the bids came from the 91-day Treasury bills. All the ¢1.571 billion bids tendered were accepted.

For the six months bill, ¢382.37 million were tendered, with all the bids accepted.

Interest rates, however, continued to remain high though not surprising because it is coming on the back of an increase in the Bank of Ghana’s policy rate to 28%.

Whilst the yield on the 91-day bill went for 35.74%, higher than the previous week’s 35.71% that of the 182-day T-bill was sold for 35.81%, compared to 35.75% previously.

With the deadline of the Domestic Debt Exchange Programme expected to end tomorrow February 7, any success will therefore impact positively on the domestic financial markets.

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