The government has recorded a 5.63% oversubscription of Treasury bill sales at a surging interest rate.
Per the auction results according to the Bank of Ghana, the government got GHC 3.22 billion.
The government accepted ¢3.20 billion of the bids tendered by the investors, largely banks, about 99% of the subscription.
However, interest rates continued to surge, raising concerns about the cost of repaying the debt instruments.
This time around, a chunk of the bids came from the 91-day bill, in which about ¢2.36 billion were tendered. The government accepted all the bids.
About ¢717.51 million came from the 182-day bill, of which ¢701.67 million were accepted.
For the 364-day bills, the bids tendered were ¢146.20 million. The government took ¢143.20 million.
Meanwhile, the yield on the 91-day bid increased by 0.31% to 27.02%. That of the 182-day also went up to 28.61 percent, from the previous 27.88 percent.
For the one-year bill, the interest rate was 31.24 percent, from 31.08 percent.
Source: joybusiness
