T-bills auction: Government records marginal oversubscription; interest rates hit 30.30%

Government recorded a marginal oversubscription of treasury bills auction, as interest rates continued its upward trend on the money market.

According to the auction result by the Bank of Ghana, the government got about ¢2.34 billion.

The target for this auction was about ¢2.28 billion.

¢1.493 billion cedis were bids tendered for the 91-day bill. All the bids were subsequently accepted.

Also, the bids for the 182-day T-bills were estimated at about ¢503.58 million. Similarly, all the bids were accepted.

For the 364-day bill, about ¢345.14 million were gotten from the auction.

Meanwhile, interest rates on the 364-day bill went up by 0.26% to 30.30%.

The yield on the 91-day bill also went up to 25.24%, from the previous 24.92%. That of the 364-day bill however stood at 27.14%, higher than the earlier 26.80%.

The rising interest costs is a major concern as government will have to pay more for servicing the debt instrument.