T-bills auction: Interest rates ease again; government records 46.7% oversubscription

Interest rates eased again as treasury bills auction was oversubscribed by a whopping 46.7%.

This follows another decline in headline inflation and an agreement between Ghana and its bilateral creditors on the restructuring of the bilateral external debt.

The move signals an expected improved economic environment going forward.

The yield on the 91-day bill went down to 29.03% from the previous 29.19%.

The 182-day bill also declined by 23 basis points to 31.51%.

For the 364-day bill, it also fell to 32.08% from 32.34% the preceding week.

Meanwhile, the government recorded a whopping 46.7% oversubscription of the short-term instruments to the tune of GH¢3.86 billion cedis.

According to the auction results by the Bank of Ghana, demand for the short-term instruments surged.

About 73.4% of the bids (GH¢2.837 billion) came from the three-month bill in which all were accepted.

GH¢840.48 million were bids tendered for the 182-day bill. The uptake was GH¢839.32 million.

For the one-year bill, all the GH¢185.04 million bids were accepted.