GHS 2.24bn T-Bill auction oversubscribed by 16.3% at interest cost of 33.2%
The Finance Ministry in the issuance of its 91,182 and 364 days treasury bills exceeded its target of raising GHS 2.24bn.
The Treasury in the auction of the short-term securities exceeded its target by some GHS 366m as it managed to raise GHS 2.61bn from the debt market.
This is after it successfully raised GHS 3.09bn from the domestic debt market exceeding its auction target by GHS 510m in the previous auction.
Bids for the 91, 182 and 364 days T-Bills amounted to GHS 2,296 million, GHS 324 million and GHS 183 million respectively with Government accepting bids amounting to GHS 2,102m, GHS 324 and GHS 183m made for the 91, 182 and 364-day T-Bill.
The 91, 182 and 364 days T-Bills were auctioned at interest rates of 29.4%, 31.4% and 33.2% respectively.
Despite the high rates on T-Bills, real returns on the short-term debt instruments are still negative given that the rates are below the prevailing inflation rate of 38.1%.
Despite the government’s success in raising funds, the continued surge in interest rates raises questions about the broader economic and fiscal landscape in Ghana, as investors seek higher returns amid perceived risks.
