Interest rates at the recent Treasury bills auction experienced a slight decline as the government witnessed a marginal oversubscription of Treasury bills.
The latest data from the Treasury Market reveals that the government successfully secured GH¢4.212 billion, surpassing the targeted amount by 3.38%.
The oversubscription had an impact on the interest rates of Treasury bills, leading to a decrease. The rate on the 91-day bill saw an 11 basis point reduction to 29.24%.
Similarly, the rate on the 182-day bill decreased from the previous 31.94% to 31.88%. The yield on the one-year bill also dropped to 32.48% from the preceding week’s 32.49%.
The decline in the profit rate of Treasury bills contradicts predictions from financial experts who anticipated an increase in T-bills yields due to the government’s need for funds to support its budget.
In terms of distribution, approximately GH¢2.147 billion came from the 91-day bill, constituting about 50.9% of the total bids.
The one-year bill followed with about GH¢1.646 billion tendered, and all were accepted, making up 39.07% of the total bids. The 182-day bill received bids worth GH¢417.80 million, of which GH¢416.33 million were accepted.
Overall, the funds raised will be used, in part, to refinance estimated maturities of GH¢2.55 billion.