The Ghanaian government recorded a marginal oversubscription in its latest treasury bills (T-bills) auction, but this came at the cost of rising interest rates across the board.
According to auction results released by the Bank of Ghana, the government raised GH¢4.195 billion from the sale of short-term debt instruments, exceeding its target of GH¢4.035 billion. All bids submitted during the auction were accepted.
The majority of the funds—approximately 83%, or GH¢3.52 billion—came from the 91-day T-bill, demonstrating a strong preference for shorter-term securities. The 182-day bill saw GH¢545.83 million worth of bids, while the 364-day bill received bids totaling GH¢128.52 million.
Despite the oversubscription, interest rates continued to climb for the second consecutive week. The yield on the 91-day bill increased by 33 basis points to 25.94%. Similarly, the rate on the 182-day bill rose to 27.03%, compared to 26.90% the previous week. The 364-day bill also experienced an upward shift, with its rate climbing by 15 basis points to 28.73%.
The rise in interest rates could be attributed to increased demand for government borrowing, creating a challenging environment for the cost of short-term debt. The continued upward trend may signal heightened risk or inflationary pressures as investors demand higher returns to hold government securities.
