Interest Rates Of Treasury Bills Shoot Up

 

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The cost of the government's domestic debt appears to be increasing as interest rates continue to climb in the money market. Recent auction results published by the Bank of Ghana show that the yield on the 364-day bill rose by 0.34%, reaching 32.17%. Similarly, the rate on the 91-day bill surged from 27.28% to 28.12% in the previous week. The 182-day bill also experienced a slight increase of 0.28%, reaching 29.39%.

This trend of rising interest rates has been consistent since April 2023, after the Treasury compelled the rates to reduce in March 2023. Consequently, the escalating cost of the T-bills worries market watchers and analysts about its impact on government expenditure.

In other news, the government missed its T-bills target by 10.8% representing ¢408.36m as it secured a total of ¢3.350 billion from the sale of the short-term securities. The majority of the bids were for the 91-day bill with investors tendering ¢2.601 billion bids, which were all accepted. Also, the government accepted all the ¢496.95 million offered for the 182-day T-bill.