The yield curve showed that interest rates dropped for the fifth straight week, based on the Bank of Ghana’s Treasury Bills auction results.
This comes after inflation is predicted to decline in January 2024. It is also anticipated that the declining interest rates will help slightly lower the cost of the government’s domestic debt.
The 91-day bill’s rate decreased to 28.29%, or 30 basis points. The 182-day bills dropped precipitously from 31.09% to 30.79% the week before.
Additionally, the one-year bill decreased from 31.79% the week before to 31.39%.
The government was able to secure GH¢4.52 billion from the sale of the short-term securities, but demand for T-bills remained high. This amounted to an oversubscription of roughly 58.26%.
The 91-day bill, where the uptake was GH¢1.914 billion, generated the majority of the bids. That amounted to roughly 42.27%.
The 364-day bill complied by requesting GH¢1.402 billion in subscriptions. Every bid was approved.
GH¢1.211 billion worth of bids were also tendered for the 182-day bill. Every bid was approved.
SECURITIES BIDS TENDERED (GH¢) BIDS ACCEPTED (GH¢)
91 Day Bill 1.914 billion 1.914 billion
182 Day Bill 1.211 billion 1.211 billion
364 Day Bill 1.402 billion 1.402 billion
Total 4.527 billion 4.527 billion
Target 2.861
