T-bills auction: Interest rates up for 36th week running; government records 33% oversubscription

Interest rates went up for the 36^th week running as the increasing cost of borrowing will bite the government in the future.

The yield on the 91-day T-bill went up to 29.96% from the prior week of 29.81%.

That of the 182-day bill increased by 47 basis points to 32.14%.

For the 364-day bill, it also surged to 33.70% from 33.42% the preceding week.

The rising interest rates may bite the government as interest payments will shoot up.

Meanwhile, the government recorded 33.01% oversubscription of the T-bills sale to th.86 billion, according to the auction results by the Bank of Ghana.

The total subscription was higher than the previous week’s ¢2.58 billion

The government accepted ¢2.69 billion of the total bids tendered for the auction.

The majority of the bids came from the 91-day bill. This was to the tune of ¢2.033 billion, representing about 65.7% of the total bids.

For the 182-day bill, about ¢517 million were tendered. The government, however, accepted ¢439 million. About ¢311.21 million were, however, tendered for the one-year bill, but the government accepted ¢233 million.