Gov’t exceeds T-Bills target at costly interest rates of 25%, 26% on 91, 182 day bills
The 91 and 182 day treasury bills auctioned by the Bank of Ghana (BoG) on behalf of the government, saw some GHS 1,504 million mobilised as credit from investors to the government.
The secured GHS 1,504 million was against a programmed auction target of GHS 1,325 million.
Government, in accepting the GHS 1,504 million bids tendered, exceeded its target by GHS 179 million.
This, however, came at an increased cost to the government in the form of higher interest rates.
Interest rates on the 91 and 182 days T-Bills were 25% and 26% respectively.
In the previous week’s auction of the 91, 182 and 364 days T-Bills, interest rates on the 91, 182 and 364 days T-Bills were 22%, 23% and 24% respectively.
Despite the increased interest rates on the 91 and 182 day T-Bills, the interest rates are less than the country’s inflation rate which currently stands at 27.6%.
This implies that, returns on government short term debt securities is still negative.
Meanwhile, government, in its next auction – June 24 – is aiming at raising some GHS 1,311 million from the issuance of the 91, 182 and 364 days T-Bills.
Auctresults-1803 by Fuaad Dodoo on Scribd
