Treasury Bill undersubscription by 23%, Interest rates are unchanged

Government Treasury bills sales were undersubscribed by 23.83 percent, totaling 2.44 billion, forthe first time in four weeks.

Following four weeks of record-high investor interest, this indicates that short-term security demand has decreased.

Although investors, who were primarily banks, had few opportunities to invest in the financial market, this could be explained by the sharp decline in interest rates. Some analysts think that investors’ focus has shifted to Bank of Ghana bills, which are currently offering a 28 percent rate of return.

The 91-day bill brought in approximately 1 point 41 billion cedis, while the 182-day and one-year T-bills brought in approximately 553 million and 468 million cedis, respectively.

Despite a significant decline over the previous three weeks, interest rates remained the same.

The yield on the 91-day increased to 18.87 percent from 18.52 percent the previous week.

In contrast, the yield on the 6-month bill was estimated at 21.4%3%, up from 21.2%7% one week prior.

Story by : Antwi Mabel