Government Achieves 59% Oversubscription As T-Bills Auction Sees Interest Rates Drop to 28.29%

In the latest treasury bills auction conducted by the Bank of Ghana, interest rates have experienced a continual decline for the fifth consecutive week, attributed to an anticipated easing in January 2024 inflation. This downward trend is poised to contribute marginally to the reduction in the government's domestic debt costs.

Specifically, the rate on the 91-day bill exhibited a 30 basis points decrease, reaching 28.29%, while the 182-day bill recorded a decline to 30.79% from the previous week's 31.09%. Similarly, the one-year bill saw a drop to 31.39%, down from the preceding week's 31.79%.

Despite the decreasing interest rates, there was sustained high demand for treasury bills, resulting in a significant oversubscription of approximately 58.26%. The government successfully secured GH¢4.52 billion from the sale of these short-term securities.

The 91-day bill attracted the majority of bids, with an uptake of GH¢1.914 billion, constituting approximately 42.27%. The 364-day bill followed suit, recording a subscription of GH¢1.402 billion, with all bids accepted. This robust demand underscores investor confidence in the short-term government securities market.