As the government reported a modest oversubscription of its Treasury note auctions, interest rates increased moderately once more.
The Bank of Ghana’s (BOG) most recent auction indicates that the rising rates coincide with the Central Bank’s most recent hike in the policy rate.
The yield on the 91-day T-bill grew by 0.31% to 19.69% according to the auction results, while the yield on the 182-day T-bill increased to 22.24% from 21.85% the previous week. The 364-day T-bill’s interest rate likewise increased to 26.95%.
Because the existing rates do not correspond with the current macroeconomic realities, some analysts have stated that the recent increase in interest rates on the Treasuries market is not unexpected.
The current policy rate is 29.5%, although the typical loan rate is around 38%.
The T-bill sale, which raised GH1.88 billion, saw a slight oversubscription of 6.16%, according to the government.
Instead of the GH1.76 billion that was intended, it accepted GH1.85 billion. The 91-day T-bill contributed a significant portion of the bids.
For the 91-day and 182-day T-bills, the government accepted each and every bid. From these devices, GH1.293 billion and GH422 million were acquired.
Out of the GH167 million offered for the one-year bill, it accepted GH140 million.