Interest rates fall marginally again; government records 98% oversubscription of T-bills sale

For the second week in a row, interest rates on the Treasury market fell as investors focused more on short-term assets as a result of the debt exchange program.

The debt exchange scheme, which forced some investors to leave the debt market, is to blame for this, though.

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However, the government would benefit from the falling interest rates as its borrowing costs are anticipated to drop. If the trend continues, this would strengthen its financial position.

The yield on the 91-day Treasury bill decreased by 0.66% to 35.58%, and the yield on the 182-day Treasury note decreased by 0.63% to 36.03% from 36.58% the week before. The price for the 364-day was also 36.10%.

According to information from the Bank of Ghana, the government exceeded its objective for the weekly sale of Treasury bills by 98.1%.

It raised $3.93 billion overall from the short-term securities auction.

A total of 2.404 billion of the bids were submitted for the 91-day T bill. However, the government decided to accept 2.393 billion of the offers.

The bids submitted for the 6-month and 1-year T-bills, however, were 779 million and 747 million cedis, respectively.

Nevertheless, the government accepted 691.43 and 586.83 respectively.

The Bank of Ghana has announced the auction results in the table below.

Securities Bids Tendered (GH¢) Bids Accepted (GH¢)
 91 Day Bill  2.404 billion  2.393 billion
182 Day Bill  779.31 million  691.43 million
 364-Day Bill  747.06 million  586.83 million
 Total  3.93 billion  3.671 billion
 Target  1.984 billion  1.984 billion



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