Interest rates fell for the fifth consecutive week on the yield curve, according to results of treasury bills auction by the Bank of Ghana.
This follows an expected ease in January 2024 inflation.
The falling interest rates is also expected to help reduce the cost of the government’s domestic debt marginally.
The rate on the 91-day bill went down by 30 basis points to 28.29%.
That of the 182-day bill also took a nose dive to 30.79% from the previous week’s 31.09%.
The one-year bill also dropped to 31.39% from the preceding week’s 31.79%.
Meanwhile, demand for T-bills remained high as the government secured GH¢4.52 billion from the sale of the short-term securities. This represented about 58.26% oversubscription.
The majority of the bids came from the 91-day bill in which the uptake was GH¢1.914 billion. This was approximately 42.27%.
The 364-day bill followed suit with a subscription of GH¢1.402 billion. All the bids were accepted.
The 182-day bill also saw bids worth GH¢1.211 billion tendered. All the bids were accepted.
| SECURITIES | BIDS TENDERED (GH¢) | BIDS ACCEPTED (GH¢) |
| 91 Day Bill | 1.914 billion | 1.914 billion |
| 182 Day Bill | 1.211 billion | 1.211 billion |
| 364 Day Bill | 1.402 billion | 1.402 billion |
| Total | 4.527 billion | 4.527 billion |
| Target | 2.861 | |
Source: Myjoyonline