The government is now borrowing at lower interest rates as investors continue to show strong demand for Treasury bills.

At the latest auction, investors offered the government GH¢9.93 billion, which was 51.6% more than the GH¢6.55 billion the government had planned to raise.

The government accepted GH¢8.38 billion of the bids.

The 91-day Treasury bill attracted the most interest, receiving GH¢6.23 billion in bids, of which the government accepted GH¢5.84 billion.

The 182-day bill received GH¢1.92 billion in bids, with GH¢1.59 billion accepted, while investors offered GH¢1.80 billion for the 364-day bill. The government accepted GH¢952.77 million.

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The strong demand came despite another decline in the interest rates investors will earn on the bills.

The interest rate on the 91-day bill fell from the previous week to 4.80%, while the rate on the 182-day bill dropped from 6.87% to 6.67%.

The biggest decline was recorded on the 364-day bill, whose rate fell by 0.66 percentage points to 10.11%.

The results show that investors remain willing to lend to the government even as returns on Treasury bills continue to fall.

For the government, sustained strong demand could help reduce borrowing costs as it raises funds to finance its programmes.

DR/MA

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