T-Bills auction: Government to borrow ¢1.77bn this week

The government will borrow ¢1.77 billion from Treasury bills this Thursday, April 6, 2023.

This will be done via the issuance of the 91-day, 182-day and 364-day T-bills.

The proceeds is expected to be used to refinance maturing bills worth ¢1.68 billion.

Demand for the short term securities rebounded again, following improved investor sentiments about the economy.

Last week, the government accepted ¢1.60 billion out of total bids tendered worth ¢1.62 billion. The uptake exceeded the auction target as demand picked up.

Interest rates however rose marginally as the government secured more than 21.43% from the Treasury bills sale.

The increase in interest rates was expected due to the hike in the policy rate of the Bank of Ghana to 29.5%.

Interest rates inched up as the Central Bank increased its base lending rate to banks last Monday, March 27, 2023, to check the high inflation.

Both the 91-day and 182-day T-bills went up marginally by 0.51 and 0.42 percentage points to 19.38% and 21.85% respectively.

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