T-bills auction: Interest rates subside to 15%; government records marginal oversubscription

Interest rates subsided to 15% in the latest treasury bill auction as demand for the short-term instruments declined.  

The yield on the 91-day T-bill fell by 185 basis points to 15.85%.

Similarly, that of the 182-day bill also nosedived to 16.92% from 18.96% the previous week.  

The rate on the 364-day bill also fell by 102 basis points to 18.96%.  

The declining interest rates, though good for the economy, can compel some investors to invest in foreign-denominated assets which will impact negatively on the value of the cedi. 

Meanwhile, the government recorded a 12.28% oversubscription of the T-bills.

It got GH¢9.27 billion from the sale of the T-bills, against a target of GH¢8.260 billion.

The Treasury accepted GH¢8.77 billion of the bids tendered.   

The 91-day bill received the highest bids worth GH¢6.22 billion. All were accepted.

For the 182-day bill, GH¢1.833 billion was tendered. About GH¢1.803 billion was accepted.  

The one-year bill received bids worth GH¢1.207 billion. The government however only took GH¢746 million of the bids.