Treasury bills witness marginal drop as interest rates fall slightly

Results from the Bank of Ghana's weekly treasury bills auction have shown a marginal drop from last week's subscriptions.

The auction held on December 23, showed that the total subscription was GH¢2,015.85.

Even though this was more than the target of GH¢1,438 million, this was lower than what was achieved in the last auction.

The 91-day T-Bill recorded a drop of 0.64% to 34.93%, followed by the 182-day bill with a decline of 0.50% to 36.03%.

On the other hand, interest rates also dropped to 35.36% for the 91-day bill and 35.90% for the 182-day bill.

The 91-day bill accepted GH¢1,413.86 million whiles the 182-day bill accepted GH¢601.99 million.

The reduction in interest rates in the last few weeks has been attributed to the debt exchange programme and the announcement that treasury bills were exempted from the programme.

Also, a reduction in the interest rate will mean that the yields on the bills will be less.