T-bills auction: Interest rates fall for 11th consecutive week; government secures GH¢5.36bn

Interest rates fell for the 11t^h week running as demand for the Treasury bills continued to surge.

The declining yields will reduce the government's cost of borrowing albeit marginally.

The yield on the 91-day bill fell by 25 basis points to 26.49%.

That of the 182-day also eased to 28.99% from 29.24% the previous week.

Similarly, the 364-day bill went down by 25 basis points to 29.59%.

Meanwhile, the government recorded about 37.7% oversubscription of the short-term instruments.

It secured GH¢5.36 billion from the auction of the T-bills.

A chunk of the offer came from the 91-day bill.

About GH¢3.728 billion, representing 69.28% were tendered, which all were accepted.

For the 182-day bill, GH¢1.078 billion were tendered. The uptake was GH¢1.067 billion.

The 364-day bill received bids worth GH¢574.31 million. All the bids tendered were accepted.

Analysts believe the yields on the short-term instruments will continue to ease in line with inflation expectations.

SECURITIES	BIDS TENDERED (GH)	BIDS ACCEPTED
91-Day Bill	3.728bn	3.728bn
182-Day Bill	1.078bn	1.067bn
364-Day Bill	574.31m	574.31m

Total	5.381bn
Target	3.891bn

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