Interest rates on the government securities have fallen sharply across the yield curve, reaching record lows and signaling a potential reduction in bank lending rates that could stimulate economic growth.
The decline also comes as a relief for the government, as its cost of borrowing is set to ease.
Data from the Bank of Ghana (BoG) shows that the yield on the 91-day Treasury bill fell by 215 basis points to 6.45%, while the 182-day bill declined to 8.18% from 10.67%. The yield on the 364-day bill also eased by 86 basis points to 12.93%.
The latest Treasury bill auction recorded a strong response from investors, with bids totaling GH¢25.2 billion, representing 170% oversubscription of the government’s target of GH¢9.32 billion. The central bank accepted GH¢11.40 billion of the bids.
The 364-day bill remained the most popular instrument, attracting GH¢9.37 billion in bids, with GH¢5.77 billion accepted.
The 91-day bill saw bids totaling GH¢8.61 billion, of which GH¢3.19 billion was accepted, while the 182-day bill attracted GH¢7.22 billion in bids, with GH¢2.45 billion accepted.
A Business Desk Report