Credit: Kekeli K. Blamey
Interest rates have taken a significant tumble, falling to 17%, as investor demand for treasury bills continues to surge.
The government has also recorded a substantial 79.61% oversubscription of the T-bills sale, according to the latest auction results from the Bank of Ghana.
The yield on the 91-day bill plummeted by 308 basis points to 17.71%, while the 182-day bill dropped to 18.96% from 22.98% the previous week. The 364-day bill also saw a significant decline, falling by 271 basis points to 19.98%.
The government received a total of GH¢10.30 billion in bids, far exceeding its target of GH¢5.73 billion. However, it rejected GH¢4.56 billion of the bids, accepting only GH¢6.22 billion.
The 91-day bills received the highest bids, with GH¢6.009 billion tendered and GH¢4.43 billion accepted. The 182-day bill received bids worth GH¢2.89 billion, with GH¢842.61 million accepted, while the 364-day bill received bids worth GH¢1.404 billion, with GH¢947.06 million accepted.
The significant fall in interest rates is a welcome development for the government, as it will lead to a reduction in domestic interest payments.
The development is also expected to have a positive impact on the economy, as lower interest rates will make borrowing cheaper for businesses and individuals.
