Subscriptions for treasury bills in the government’s most recent auction on September 1, 2023, have experienced a significant surge.
The government not only met but exceeded its target of GH¢3.064 billion, raising a total of GH¢3.53 billion as interest rates continue to climb.
Over the past two weeks, the government has consistently exceeded its treasury bill targets, even though they were set at ambitious levels.
All bids submitted in this week’s auction were accepted, resulting in an oversubscription of GH¢462.83 million above the target amount. Presently, interest rates range between 27.36% and 31.65%.
However, the ongoing rise in interest rates may pose challenges for the government in meeting its maturity obligations.
Specifically, interest rates for the 91-day and 182-day bills have increased to 27.02% and 28.6%, respectively.
For the 364-day bills, interest rates have surged to 31.65%.
In terms of subscription, the 91-day bill received a total of GH¢2.63 billion, while GH¢650.63 billion was accepted for the 182-day bill, and GH¢237.08 million was accepted for the 364-day bills.
Looking ahead, the government’s target for the next auction has been adjusted to GH¢2.601 billion.