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The government has recorded a 5.63% oversubscription of treasury bill sales but at surging interest rates.

According to the auction result by the Bank of Ghana, the government got GH¢3.22 billion.

The government accepted GH¢3.20 billion of the bids tendered by the investors, largely banks, about 99% of the subscription.

However, interest rates continued to rise, raising concerns about the cost of repaying the debt instruments.

This time around, a chunk of the bids came from the 91-day bill, in which about GH¢2.36 billion were tendered. The government accepted all the bids.

About GH¢717.51 million came from the 182-day bill, of which GH¢701.67 million were accepted.

For the 364-day bills, the bids tendered were GH¢146.20 million. The government took GH¢143.20 million.

Interest Rates Reach 31.24%

Meanwhile, the yield on the 91-day bid increased by 0.31percent to 27.02 percent.

That of the 182-day also went up to 28.61 percent, from the previous 27.88 percent.

For the one-year bill, the interest rate was 31.24 percent, from 31.08 percent.

The government had intended to borrow a whopping ¢38.959 billion via T-bills in the third quarter of 2023.

According to its issuance calendar released by the Ministry of Finance, this will be done via the issuance of the 91-day, 182-day and 364-day bills.

The short-term debt instruments will be issued weekly to meet government rising liquidity needs.