Interest rates still remain high as treasury bills get oversubscribed in latest auction

Last week, interest rates on treasury bills increased from 32.8% to 33% as the government’s target was slightly undersubscribed.

In this week’s auction, interest rates have inched further to 33.2% for the 364-day bills.

The interest rates for the 91-day and 182-day bills currently stand at 29.48% and 31.42%.

This, will however, be the 33rd consecutive time this year that interest rates have increased.

Despite the high rates, the government has witnessed oversubscriptions recently except in a few instances where it saw slight undersubscriptions.

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 13, 2023, the government secured GH¢2.61 billion.

The results showed that the bills were oversubscribed marginally by GH¢367.27 million away from the set target of GH¢2.243 billion.

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

The 91-day bill saw a total subscription of GH¢2.10 billion, GH¢324.03 billion was accepted from the 182-day bill and GH¢183.66 million was accepted from the 364-day bills.

The government has set its next auction target at GH¢2.282 billion.

SSD/OGB

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