T-bills auction: Interest rates up for 35th week running; government records 15.5% oversubscription

Interest rates went up for the 35^th week running as the yield on the 91-day Treasury bill almost reached 30%.

According to the auction results by the Bank of Ghana, the government recorded 15.53% oversubscription to the tune of ¢2.58 billion.

The rising interest rates would come as a huge cost to the government as interest payments are expected to go up.

The yield on the 91-day T-bill hit 29.81% compared with 29.48% a week ago.

For the 182-day bill, the rate went up by 22 basis points to 31.67%.

That of the 364-day bill also reached 33.42%, from 33.21% the previous week.

Meanwhile, the government accepted ¢2.50 billion of the total bids tendered for the auction.

The target for the auction was ¢2.23 billion.

Once again, a chunk of the bids came from the 91-day bill. About 67.3% of the total bids came from the 3-month bill.

For the 182-day bill, a little above ¢537.90 million were tendered. The government accepted all the bids.

About ¢306.89 million were, however, tendered for the one-year bill, but the government accepted ¢248.81.