T-bills auction: Interest rates surge to 32.50%; government records marginal undersubscription

Interest rates continued to surge on the money market despite the government securing a marginal undersubscription of treasury bills auction.

According to the auction results from the Bank of Ghana, the yield on the 364-day bill shot up to 32.85% from 32.50% the previous week.

Also, the 91-day T-bill also went up by 0.29% to 28.50%. That of the 182-day bill also inched up to 30.916% from 30.67% the previous week.

Meanwhile, the government got ¢2.499 billion from the sale of the T-bills, approximately 2.72% undersubscription of the targeted amount.

The expected amount to be raised was ¢2.570 billion.

A chunk of the bills came from the 91-day T-bills.

About ¢1,884 billion of the bids were tendered. All the bids were however mobilised from the very end of the money market.

For the 182-day, ¢484.17 million were tendered, in which all were accepted.

On the other hand, the 364-day bill received an offer of ¢131.16 million. All the bids were accepted.