Interest Rates Near 36% As Government Achieves T-Bills Target

Interest rates neared 36% on the money market, though fell short of the October 2022 inflation of 40.4%.

This indicates that the returns on investments remain negative.

According to the results of the treasury bills auction, the government for the first time in six weeks ran recorded oversubscription.

This could signal some level of investor confidence as the government negotiates a deal with the International Monetary Fund for a program. Again, liquidity has witnessed some improvement.

Indeed, the government secured about ¢1.65 billion, a 41.7% increase in the sale of short-term securities.

A chunk of the sales came from the 91-day Treasury bills, where about ¢1.38 billion was mobilized by the government. The bids tendered were ¢1.38 billion which the government accepted.

This came at a yield of 35.19%, higher than 34.3% the previous week.

For the 182-day Treasury bills, the bids tendered were ¢274.99 million, which the government accepted. The interest rate was 35.98%, 0.58% higher than the past week%.