T-bills auction: Interest rates fell sharply to 6.4%; government exceeds target by 170%

Interest rates fell sharply on the yield curve to record levels, signaling a further reduction in lending rates by banks that will stimulate economic growth.

The continuous drop in interest rates is also good for the government as its cost of borrowing will ease.

According to the data from the Bank of Ghana, the yield on the 91-day bill fell by 215 basis points to 6.45%.

That of the 182-day bill also declined to 8.18% from the previous 10.67%.

Similarly, the yield on the 364-day bill eased by 86 basis points to 12.93%.

Meanwhile, the government once again recorded 170% oversubscription of treasury bills to the tune of GH¢25.2 billion.

The Treasury accepted about GH¢11.40 billion of the bids tendered. The target for the auction was estimated at GH¢9.32 billion.

Once again, the 364-day bill was the most subscribed instrument.  About GH¢9.37 billion of the bids were tendered, representing a little over 37%. The uptake was GH¢5.77 billion.

For the 91-day bill, GH¢8.605 billion of the bids were tendered. However, the bids accepted was GH¢3.18 billion.

For the 182-day bill, GH¢7.21 billion of the bids were tendered. The bids accepted were estimated to the tune of GH¢2.44 billion.

The post T-bills auction: Interest rates fell sharply to 6.4%; government exceeds target by 170% appeared first on The Ghana Report.