The government has recorded a 5.63% oversubscription of treasury bill sales but at surging interest rates.
According to the auction result by the Bank of Ghana, the government got GH¢3.22 billion.
The government accepted GH¢3.20 billion of the bids tendered by the investors, largely banks, about 99% of the subscription.
However, interest rates continued to rise, 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 GH¢2.36 billion were tendered. The government accepted all the bids.
About GH¢717.51 million came from the 182-day bill, of which GH¢701.67 million were accepted.
For the 364-day bills, the bids tendered were GH¢146.20 million. The government took GH¢143.20 million.
Interest Rates Reach 31.24%
Meanwhile, the yield on the 91-day bid increased by 0.31percent to 27.02 percent.
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.
The government had intended to borrow a whopping ¢38.959 billion via T-bills in the third quarter of 2023.
According to its issuance calendar released by the Ministry of Finance, this will be done via the issuance of the 91-day, 182-day and 364-day bills.
The short-term debt instruments will be issued weekly to meet government rising liquidity needs.
Source: dailyguidenetwork.com
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |