T-bills auction: Interest rates hit 31.65%; government achieves 15% oversubscription

Interest rates continued to surge on the money market, signaling an increasing cost of domestic debt.

According to the latest results by the Bank of Ghana, interest rates went up across the yield curve.

This is coming after the government forced rates down in March 2023, following the completion of the first phase of the Domestic Debt Exchange Programme.

The yield on the 364-day bill went up by 0.41% to 31.65%.

Again, the rate of the highly patronized 91-day bill shot up to 27.36%, from 27.02%.

Similarly, the rate on the 182-day bill increased from a marginal 0.10% to 28.71%.

Meanwhile, the government recorded about 15.10% oversubscription of the treasury bills target to the tune of ¢3.52 billion.  All the bids tendered for the auction were accepted.

The 91-day bill received an uptake of about ¢2.63 billion.

That of the 182-day bill received bids worth little above ¢650 million.

The one-year bill however got bids to the tune of ¢237.08 million.