Investments

Government sells Treasury bills at 31% as interest rates rise

1 Mins read

Interest rates in the short-term Treasury market rose further to 31% on September 10, 2022, as investors continue to show interest in the short-term securities.

Though government exceeded its target for the 13th week running, the cost of repaying these loans will go up.

Since inflation begun rising about five months ago, interest rates have been escalating consistently to compensate investors.

This has boosted investor interest in Treasury bills.

However, the rising interest payments is a matter of concern to many economists, analysts and market watchers.

According to the auction results by the Bank of Ghana, the 91-day Treasury bill went for 29.48%, compared to 29.04% the previous week, whilst the 182-Day T-bill traded at 31.05%, as against 30.22% the earlier week.

Similarly, the T-bills sale was oversubscribed by 35% to the tune of ¢2.287 billion.

Though the investors still showed more interest in the 3-months bill that of the 6 months bill also witnessed significant interest this time around.

¢860.92 million worth of the bids came from the 182-day bill. ¢815.70 million were however accepted.

For the 91-day bill, ¢1.427 billion of the bids were tendered in, but ¢1.410 billion were accepted.

The target for this auction was ¢1.682 billion.

 Securities Bids Tendered (GH¢) Bids Accepted (GH¢)
  91 Day Bill  1.427  billion  1.410 billion
182 Day Bill  860.92 million  815.70 million
Total 2.287 billion 2.225 billion
Target 1.682 billion

 

 

Source:  Myjoyonline.com

Related posts
EuropeGlobal 360HeadlineInvestments

Barclays: $7bn worth of securities sold in error have been claimed

1 Mins read
Barclays said investors have submitted claims for $7 billion out of $17.7 billion worth of securities it sold in error, under the terms…
HeadlineInvestments

IMF’s US$3bn will restore investor confidence – Dr. Yamson

3 Mins read
The decision to seek a bailout programme from the International Monetary Fund (IMF) will restore investor confidence and economic stability, says celebrated…
Investments

How Zoho became a $1B company without a dime of external investment

1 Mins read
  The traditional startup fever dream goes something like this: You come up with a revolutionary idea for a startup in your dorm…

Leave a Reply

Your email address will not be published.

error: Content is protected !!