Government achieves T-bills target after weeks of undersubscription

The Government of Ghana has achieved its target for the weekly Treasury bill auction after 5 weeks of consecutive under-subscription.

Interest rates are nearing 36% as inflation continues to soar to stand at 40.4% as of October 2022.

The results showed that the GH¢1,381 million bids were accepted from the 91-day treasury bill and GH¢274.99 was accepted from the 182-day bill.

Interest rates stood at 35.1% and 35.9% for the 91 and 182-day treasury respectively.

The target for the auction was $1,1168 million.

Despite the soaring interest rates, the returns on treasury bills still remain negative due to the increasing rate of inflation and the depreciation of the cedi.

Nevertheless, comparing this week’s auction to that of last week, the bills performed slightly. This may show an increase in investor confidence in the country’s financial instruments.

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SSD/MA