Treasury bill subscriptions hit GH¢3.35 billion despite interest rates hitting 32%

In the latest treasury bill auction held on September 15, 2023, the government was unable to meet its set target even though subscriptions hit GH¢3.35 billion.

This comes after it set the target for this week’s auction at GH¢3.75 billion but was oversubscribed by GH¢409 million.

In addition, interest rates are currently hovering between 28.12% to 32.17%.

Consistently, the government has continued borrowing at very high-interest rates, with some economists and market watchers expressing concerns.

However, these concerns, coupled with rising interest rates in recent times, have forced government to spend more to fulfil the maturities.

The 91-day and 182-day bills have interest rates of 28.12% and 29.39% respectively.

For the 364-day bills, interest rates have increased to 32.17%.

According to the auction results from the Bank of Ghana, all bids tendered in this week’s auction were accepted.

The 91-day bill saw a total subscription of GH¢2.60 billion, GH¢496.95 billion was accepted from the 182-day bill and GH¢248.36 million was accepted from the 364-day bills.

Meanwhile, the government has set its next auction target at GH¢2.58 billion.

SSD/MA

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