T-bills auction: Government records 24% oversubscription; but cost of borrowing increases

The government achieved a 24% oversubscription of treasury bills sale in the first auction for 2025.

However, it came at the expense of rising interest rates, increasing the cost of repaying the short-term instruments.

The government got GH¢5.392 billion but accepted GH¢5.371 billion for the short-term instruments.

For the 91-day bill, the government received GH¢3.539 billion but accepted GH¢3.531 billion.

About GH¢617 million were tendered for the 182-day bill. However, GH¢604.39 million were accepted.

For the 364-day bill, all the GH¢1.235 billion tendered were accepted.

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

The yield on the 91-day bill increased by 16 basis points to 28.19%.

That of the 182-day bill also shot up to 28.91%, from 28.68% the prior week.

The same could be said about the one-year bill as the rate went up to 30.15% from 30.07% the previous week.

SECURITIES	BIDS TENDERED (GH¢)	BIDS ACCEPTED (GH¢)
91 Day Bill	3.539bn	3.531bn
182 Day Bill	617.40m	604.39m
364 Day Bill	1.235bn	1.235bn

Total	5.392bn	5.371bn
Target	4.262bn

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