Treasury bill interest rates up to 33.4%, oversubscription recorded in latest auction

Interest rates on treasury bills have increased for the 35th consecutive time this year to hit 33.4% for the 365-day bill.

According to the latest auction results from the Bank of Ghana, interest rates for the 91-day bill and the 182-day bill have increased to 29.81% and 31.67% respectively.

Despite the high rates, the government has witnessed consistent oversubscriptions in its latest auctions.

Even though there are concerns about the government’s ability to be able to afford maturities the International Monetary Fund has said the rates are currently within range they are still lower than inflation.

In this week’s auction held on October 27, 2023, the government secured GH¢2.58 billion.

The results showed that the bills were oversubscribed marginally by GH¢347.57 million away from the set target of GH¢2.238 billion.

According to the Bank of Ghana results, all bids tendered in this week’s auction were not accepted.

The 91-day bill saw a total subscription of GH¢1.72 billion, GH¢537.90 billion was accepted from the 182-day bill and GH¢248.91 million was accepted from the 364-day bills.

The government has set its next auction target at GH¢2.152 billion.

SSD/NOQ

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