T-bills auction: Government records another impressive 39% oversubscription; but interest rates surge

The government recorded another impressive 39% oversubscription of treasury bill sales as demand for the short-term instruments grew.

This came at the expense of mounting interest rates which will increase interest payments.

According to the Bank of Ghana’s auction results, the government received GH¢8.890 billion from the total bids tendered by the investors, largely banks, but accepted GH¢8.839 billion.

The target for the auction was GH¢6.353 billion.

About GH¢5.6 billion came from the 91-day bill, representing 63.9% of the total bids.

The government accepted GH¢5.648 billion of the bids.

For the 182-day bill, GH¢1.318 billion were tendered. However, GH¢1.307 billion cedis were accepted.

GH¢1.883 billion were tendered for the 364-day bill which all were accepted.