T-bills auction: Government records marginal oversubscription; interest rates rise

The government recorded a marginal oversubscription of treasury bills auction.

However, this came at the expense of a rising interest rate

According to the auction results by the Bank of Ghana, the government got GH¢4.195 billion from the sale of the short-term instruments as against a target of GH¢4.035 billion.

All the bids tendered were accepted.

About 83% of the bids, approximately GH¢3.52 billion came from the 91-day bill.

GH¢545.83 million were tendered for the 182-day bill.

However, GH¢128.52 million were offered for the 364-day bill.

Meanwhile, interest rates surged on the yield curve for the second consecutive week.

The yield on the 91-day bill went up by 33 basis points to 25.94%.

The rate on the 182-day bill also increased to 27.03% as compared to 26.90% the previous week.

That of the 364-day bill also shot up by 15 basis points to 28.73%.