The government has recorded a 5.63% oversubscription of treasury bill sales but at surging interest rates.
According to the auction result by the Bank of Ghana, the government got GH¢3.22 billion.
The government accepted GH¢3.20 billion of the bids tendered by the investors, largely banks, about 99% of the subscription.
However, interest rates continued to rise, raising concerns about the cost of repaying the debt instruments.
This time around, a chunk of the bids came from the 91-day bill, in which about GH¢2.36 billion were tendered. The government accepted all the bids.
About GH¢717.51 million came from the 182-day bill, of which GH¢701.67 million were accepted.
For the 364-day bills, the bids tendered were GH¢146.20 million. The government took GH¢143.20 million.
Interest Rates Reach 31.24%
Meanwhile, the yield on the 91-day bid increased by 0.31percent to 27.02 percent.
That of the 182-day also went up to 28.61 percent, from the previous 27.88 percent.
For the one-year bill, the interest rate was 31.24 percent, from 31.08 percent.
The government had intended to borrow a whopping ¢38.959 billion via T-bills in the third quarter of 2023.
According to its issuance calendar released by the Ministry of Finance, this will be done via the issuance of the 91-day, 182-day and 364-day bills.
The short-term debt instruments will be issued weekly to meet government rising liquidity needs.
A Business Desk Report