T-Bills auction: Interest rates hit 33.01%; government records 24.5% oversubscription

Interest rates shot up on the money market to hit 33.01%.

This is coming despite the government recording a 24.5% oversubscription of Treasury bill sales at a lower target.

According to the auction results from the Bank of Ghana, all the rates across the yield curve increased.

Whilst the 364-day T-bill reached 33.01% from 32.85% the preceding week, that of the 182-day bill inched up to 31.21% as against 30.67% previously.

The yield on the 91-day also went up by 0.69% to 29.19%.

Analysts and market watchers are worried about the increasing domestic debt.

Meanwhile, the bids tendered for the 91-day bill were higher than the targeted amount of ¢2.109 billion.

About ¢2.170 billion were offered for the short-term security, but the government accepted ¢2.155 billion cedis.

For the 182-day bill, about ¢375.3 million were tendered, but the government accepted ¢353.35 million of the bids.

With regard to the 364-day bill, the government took ¢67.46 million of the ¢80.17 million tendered.

SECURITY	BIDS TENDERED	BIDS ACCEPTED
91 Day Bill	2.170 billion	2.155 billion
182 Day Bill	375.34 million	353.35 million
364 Day Bill	80.17 million	67.46 million

Total	2.626 billion	2.576 billion
Target	2.109 billion

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