Interest rates on falling spree; government T-bills oversubscribed by 40%

Interest rates fell once again as government Treasury bills was oversubscribed by about 40.3% to the tune of ¢3.89 billion.

According to the auctioning results by the Bank of Ghana, the bids for the 91-day bill was far more than the targeted amount.

Following the successful completion of the Domestic Debt Exchange Programme, interest rates on the money market have witnessed a significant fall. From a high of 35%, the rates have eased to about 20% on the average.

The yield on the 91-day bill fell by 0.52% to 18.52%.

At the same time, the 182-day rate also declined to 21.27%, from 22.84% the previous week.

Meanwhile, government accepted ¢3.87 billion of the total bids submitted.

Chunk of the bids, however, came from the 91-day T-bill as ¢2.90 billion was accepted.

For the 182-day bill, the bids submitted were estimated at ¢983.7 million. But ¢972.4 million was accepted.