T-bills: Government records 34% oversubscription, but interest rates continue to rise

The government recorded an oversubscription of its treasury bills for the second week running.

According to the auction results by the Bank of Ghana, the Treasury exceeded its target by 34.8%.

The government received GH¢5.7 billion of the total bids, but accepted a little above GH¢5.4 billion.

The 91-day bill was once again the most subscribed bill as about GH¢3.8 billion of the bids were tendered, representing 66% of the total bids. The uptake was, however, GH¢3.6 billion.

The 364-day bill also recorded bids of about GH¢1.2 billion. The bids accepted were a little above GH¢1.1 billion.

For the 182-day bill, GH¢709.8 million of the bids were tendered. About GH¢ 671 of the bids were accepted.

Meanwhile, interest rates surged on across the yield curve.

The yield on the 91-day bill increased by 3.0 basis points to 4.91%.

That of the 182-day bill also went up to 7.04% from the prior week of 7.03%.

Similarly, the yield on the 364-day bill decreased by 25.0 basis points to 10.38%.