Despite the increasing interest rates, the returns on the instrument are still negative
The Government of Ghana has exceeded its target for the weekly Treasury bill auction after several weeks of consecutive under-subscription.
Interest rates for the 91-day treasury bills stood at 35.5%, the 182-day bill stood at 36.3%, and the 364-day bill sold at 35.8%.
Despite the increasing interest rates, the returns on the instrument are still negative due to the high inflation and the depreciation of the cedi.
Inflation for the month of October stood at 40.4% whiles the Ghana cedi has depreciated by 54% according to the Bank of Ghana.
The results showed that the GH¢2,066.12 million bids were accepted from the 91-day treasury bill, GH¢223.55 was accepted from the 182-day bill, and GH¢101.71 for the 365-day bill.
The target for the auction however was GH¢2,176 million but GH¢2,392.27.
The increase in this week’s subscription may be an indication of increasing investor confidence as last week’s bills were also over-subscribed.
SSD/MA
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