BOG Governor, Dr Ernest Addison
The government has secured a total of GH¢3.37 billion from the sale of Treasury bills (T-Bills), representing about 22.45 per cent oversubscription.
According to the latest auction of the short-term instruments by the Bank of Ghana, (BOG) GH¢2.086 billion was mobilised from the 91-day T-bill.
However, the government accepted GH¢2.075 billion of the bills tendered.
Also, GH¢876.6 million was obtained from the 364-day bill, out of which government accepted GH¢875.68 million.
For the 182-day T-bill, the government accepted GH¢398.65 million from a total bid of GH¢415.55 million.
The data shows that investors are taking advantage of the high yield which the government is offering because the treasury market is its only source of borrowing, and it needs to entice participants.
However, interest rates remained high, raising concern about the servicing of the debt instruments in the next six months or one year.
The interest rates are still hovering around 35 per cent.
Whilst the yield on the 91-day bill went for 35.73 per cent, virtually same as the past week, the 182-day T-bill was sold for 35.84 per cent, higher than the previous week’s 35.81 per cent. The yield on the 364-day bill, however, stood at 35.62 per cent.
The Domestic Debt Exchange Programme ended on Friday, February 10, 2023, with over 80 per cent participation from bond holders.
By Jamila Akweley Okertchiri