T-bills auction: Government records oversubscription but at expense of rising interest rates

The government oversubscribed about 11% of its treasury bill sales for the third consecutive week.

However, it came at the expense of rising interest rates.

According to data from the Bank of Ghana, the government got GH¢4.42 billion from the auction of the short-term instrument as against a target of GH¢3.98 billion.

The government accepted all the bids tendered for the auction by investors.

About 72% of the bids came from the 91-day bill.

A total of GH¢3.18 billion was offered for the 3-month bill.

For the 182-day bill, GH¢ 957.67 million were tendered.

A little over GH¢276 million were offered for the 364-day bill.

Meanwhile, interest rates continued to surge on the yield curve.

The yield on the 91-day bill went up by 25 basis points to 26.19%.

That of the 182-day bill was 27.29% as against 27.03% the previous week.

The rate on the 364-day bill was however up by 24 basis points to 28.97%.