Treasury bills see continuous oversubscriptions as interest rates soar

Subscriptions for treasury bills in the government’s latest auction on September 1, 2023, have surged.

The government surpassed the target of GH¢3.064 billion to raise GH¢3.53 billion as interest rates continue to surge.

For the past two weeks, the government has managed to surpass its treasury bill targets even though they were ambitious.
All bids tendered in this week’s auction were accepted.

According to the results, the target was oversubscribed by GH¢462.83 million. Interest rates are currently hovering between 27.36 to 31.65%.

However, the continuous increase in the interest rate will make maturities expensive for the government to fulfill.

Whereas from the 91-day and 182-day bills, interest rates have increased to 27.02% and 28.6% respectively.

For the 364-day bills, interest rates have increased to 31.65%.

The 91-day bill saw a total subscription of GH¢2.63 billion, GH¢650.63 billion was accepted from the 182-day bill and GH¢237.08 million was accepted from the 364-day bills.

The government’s next auction target has, however, been reduced to GH¢2.601 billion.

SSD/NOQ

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