Government has witnessed a slight oversubscription of the treasury bills auction, while interest rates continued their upward trend in the money market.
According to the Bank of Ghana’s auction result, the government received approximately ¢2.34 billion in total.
The target for this auction was around ¢2.28 billion.
For the 91-day bill, bids tendered amounted to ¢1.493 billion, and all of these bids were accepted.
Similarly, all bids for the 182-day T-bills, totaling about ¢503.58 million, were accepted as well.
From the auction of the 364-day bill, the government obtained about ¢345.14 million.
However, it’s worth noting that the interest rates on the 364-day bill rose by 0.26% to 30.30%.
The yield on the 91-day bill also increased to 25.24% from the previous rate of 24.92%. Meanwhile, the yield on the 364-day bill stood at 27.14%, which was higher than the previous 26.80%.
The escalating interest costs are a significant concern as the government will have to allocate more funds for servicing the debt instrument.