Interest rates on treasury bills have declined to 20.7% in the government’s most recent auction on February 28, 2025.
Demand for short-term instruments has surged in recent weeks, with the government consistently recording over 100% subscription rates.
In this week’s auction, the government secured an oversubscription of 181%, receiving bids worth GH¢18.25 billion but accepting only GH¢7.42 billion. A total of GH¢10.83 billion in bids was rejected.
According to auction results released by the Bank of Ghana, the 91-day and 364-day treasury bills attracted the most interest.
However, while the 364-day bill received bids totaling GH¢8.72 billion, only GH¢2.02 billion was accepted.
The 91-day bill attracted bids amounting to GH¢6.21 billion, of which GH¢2.38 billion was accepted.
Additionally, the 182-day bill saw tenders worth GH¢3.32 billion, with GH¢3.02 billion accepted.
Meanwhile, interest rates have continued to decline over the past few weeks:
• The 91-day bill now stands at 20.79%, down from 24.47% last week.
• The 182-day bill has fallen to 22.98%, compared to 25.38%.
• The 364-day bill declined from 27.29% to 22.69%.
The recent surge in demand for short-term instruments signals strong investor confidence. The government’s decision to reject excess bids suggests either a cautious borrowing approach or an effort to avoid high interest rates.
Treasury bills remain the government’s primary source of borrowing as it seeks to regain access to the international capital market.
Source: www.ghanaweb.com
