Government interest costs on domestic borrowings fall again; T-Bills target also drops 6.6%

Government interest cost on short term domestic borrowings fell once again for the fourth week running.

Again, the government failed to meet its target for the second consecutive week.

Though interest costs have been falling in recent weeks, the government has also failed to achieve its target in the second successive week - something that will not go down well with managers of the economy.

According to the auctioning results, the government mobilized GH¢886.47 million, 6.6 percentage points lower than the GH¢950 million target.

Indeed, the government accepted all the bids submitted. Investors again were interested in the short end of the market as they bought a little above 812 million cedis worth of the 91-day T-Bills.

Whilst the yield on the 3-months bill fell by about 0.1%, that of the 182-day dropped by about 0.6%.

This will obviously help save the nation some cost in servicing its domestic debt. But does the fall in the Treasury bill target signal some concerns about the economy by investors. We will find out in a matter of time.

Securities	Bids Tendered (GH¢)	Bids Accepted (GH¢)	Interest rate
91 Day Bill	812.13 million	812.13 million	12.79%
182 Day Bill	74.34 million	74.34 million	13.53%

Total	886.47 million	886.47 million
Target	950 million

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Tags:

Bank of Ghana

interest costs

Treasury Bills