BoG's treasury bill auction records fifth consecutive week of falling interest rates

Ghanaian

Results from the latest treasury bills auction by the Bank of Ghana reveal a continuing trend of declining interest rates on the yield curve for the fifth consecutive week.

This reduction is attributed to the anticipated easing of inflation in January 2024, with potential benefits for the government's domestic debt cost.

The 91-day bill experienced a notable decline of

Read full article30 basis points, settling at 28.29%, while the 182-day bill saw a decrease to 30.79%, down from the previous week's 31.09%. Additionally, the one-year bill recorded a drop to 31.39%, compared to the preceding week's 31.79%.

The decline in interest rates is anticipated to contribute to a marginal reduction in the government's domestic debt cost.

Despite the falling rates, the demand for Treasury bills remained high, resulting in a total of GH¢4.52 billion secured from the sale of short-term securities, representing an oversubscription rate of about 58.26%.

The majority of bids came for the 91-day bill, with an uptake of GH¢1.914 billion, approximately 42.27% of the total. The 364-day bill followed suit, with a subscription of GH¢1.402 billion, and all bids were accepted. Similarly, the 182-day bill saw bids worth GH¢1.211 billion, and all were accepted.