Sale of Treasury bills, an important instrument that aids government domestic borrowing shot up marginally by 14.8%.
This is a turnaround from the recent mixed developments in the auction of the short term instruments.
According to auctioning by the Bank of Ghana, the government secured GH¢1.34 billion as against a target of GH¢1.17 billion.
However, majority of the sale came from the 91-day T-bills which the investors, largely banks bought for GH¢664 million.
Treasury bills is an important financial instrument that helps government to finance the national debt, therefore the recent slump in the targets were major concerns because it could have thrown government’s debt management programme out of gear.
The interest rate, particularly the 91-day T-bills, which the investors largely subscribed to fell albeit marginally to 12.63%.
However, no matter how small it is, it will save the government some interest cost on the domestic debt.
The cut in the policy rate of the Bank of Ghana by 1% is likely to sustain the downward pressure on treasury yields in the short-term to help government lower its cost of funding, which is needed to help the authorities manage the country’s huge debt service burden and a difficult fiscal position.
Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
91 Day Bill | 664.10 million | 664.10 million | 12.63% |
182 Day Bill | 141.63 million | 136.63 million | 13.42% |
364 Day Bill | 539.67 million | 539.67 million | 16.33% |
Total | 1.345.4 billion | 1.340.4 billion | |
Target | 1.171 billion |
Latest Stories
-
PenTrust CEO named ‘Best Pensions CEO’, company wins ‘Scheme Administrator Award’ at Ghana Accountancy & Finance Awards 2024
8 mins -
Alan Kyerematen’s ‘Brighter Future for Health Professionals’ in Ghana Revealed in Bono
18 mins -
NPP will ensure a safer cleaner and greener environment – Dr Kokofu
26 mins -
2024 Election: Police to deal with individuals who will cause trouble – IGP
27 mins -
Seychelles President’s visit rekindles historical and diplomatic ties with Ghana
32 mins -
Election 2024: EC destroys defective ballot papers for Ahafo and Volta regions
42 mins -
2024 Election: I am sad EC disqualified me, but I endorse CPP’s candidate – PNP’s Nabla
1 hour -
I want to build a modern, inclusive country anchored by systems and data – Bawumia to CSOs
1 hour -
Miss Health Ghana 2024: Kujori Esther Cachana crowned new Health Ambassador
1 hour -
Livestream: The manifesto debate on WASH and climate change
1 hour -
Alan Kyerematen saddened by NDC and NPP’s neglect of Krofrom Market in the Ashanti Region
1 hour -
CSIR Executive Director urges farmers to adopt technology for improved farming
2 hours -
Football Impact Africa’s Ghetto Love Initiative inspires change in Teshie
2 hours -
Peter Toobu calls for tighter border security over uncovered weapons at Tema Port
2 hours -
Gov’t has failed its commitment to IPPs – Ablakwa
2 hours