Interest Rates Archives - Wontumi Online

11 Dec

Government To Borrow ¢94.4Bn Via T-Bills In 2024

Wontumi1Businessinflation, Interest Rates, T-Bills

Government will borrow ¢94.4 billion via treasury bills in 2024 to finance its expenditure. This includes ¢31.8 billion buffer for auction shortfalls. Analysts believe the government will continue the excess uptakes to build the target buffer. Given the lower inflation and interest rates outlook, the locking-in of the 364-day yield offers a better inflation-adjusted return over the holding period. In November 2023, the government accepted ¢15.3 billion, surpassing the rollover obligation by 45.4% and the offer target by 26.5%. However, investors submitted total bids worth ¢15.6 billion (+14.9% month-on-month), exceeding the T-bill offer target by 29.0%. Importantly, money market liquidity…

06 Nov

T-Bills Auction: Interest Rates Up For 36th Week Running; Government Records 33% Oversubscription

Wontumi1Business182-day, 364-day, 91-day, BoG, Interest Rates, T-Bills

Interest rates went up for the 36th week running as the increasing cost of borrowing will bite the government in the future. The yield on the 91-day T-bill went up to 29.96% from the prior week of 29.81%. That of the 182-day bill increased by 47 basis points to 32.14%. For the 364-day bill, it also surged to 33.70% from 33.42% the preceding week. The rising interest rates may bite the government as interest payments will shoot up. Meanwhile, the government recorded 33.01% oversubscription of the T-bills sale to the tune of ¢2.86 billion, according to the auction results by the…

30 Oct

T-bills Auction: Interest Rates Up For 35th Week Running; Government Records 15.5% Oversubscription

Wontumi1Business182-day bill, 364-day bill, 91-day bill, Interest Rates

Interest rates went up for the 35th week running as the yield on the 91-day Treasury bill almost reached 30%. According to the auction results by the Bank of Ghana, the government record 15.53% oversubscription to the tune of ¢2.58 billion. The rising interest rates would come as a huge cost to the government as interest payments are expected to go up. The yield on the 91-day T-bill hit 29.81% compared with 29.48% a week ago. For the 182-day bill, the rate went up by 22 basis points to 31.67%. That of the 364-day bill also reached 33.42%, from 33.21% the…

09 Oct

T-Bills Auction: Interest Rates Hit 33.01%; Government Records 24.5% Oversubscription

Wontumi1Business182-day bill, 364-day bill, 91-day bill, BoG, Interest Rates, T-Bills

Interest rates shot up on the money market to hit 33.01%. This is coming despite the government recording a 24.5% oversubscription of Treasury bill sales at a lower target. According to the auction results from the Bank of Ghana, all the rates across the yield curve increased. Whilst the 364-day T-bill reached 33.01% from 32.85% the preceding week, that of the 182-day bill inched up to 31.21% as against 30.67% previously. The yield on the 91-day also went up by 0.69% to 29.19%. Analysts and market watchers are worried about the increasing domestic debt. Meanwhile, the bids tendered for the…

09 Oct

T-Bills Auction: Interest Rates Hit 33.01%; Government Records 24.5% Oversubscription

Wontumi1Business182-day bill, 364-day bill, 91-day bill, Interest Rates, T-Bills

Interest rates shot up on the money market to hit 33.01%. This is coming despite the government recording a 24.5% oversubscription of Treasury bill sales at a lower target. According to the auction results from the Bank of Ghana, all the rates across the yield curve increased. Whilst the 364-day T-bill reached 33.01% from 32.85% the preceding week, that of the 182-day bill inched up to 31.21% as against 30.67% previously. The yield on the 91-day also went up by 0.69% to 29.19%. Analysts and market watchers are worried about the increasing domestic debt. Meanwhile, the bids tendered for the…

25 Sep

T-bills Auction: Government Achieves 25% Oversubscription; Interest Rates Up For 5th Month Running

Wontumi1Business182-day bill, 364-day bill, 91-day bill, BoO, Interest Rates

Interest rates surged for the 5th month running despite government recording 25.7% oversubscription of treasury bills auction. According to auction results from the Bank of Ghana, total bids tendered for the short term securities were estimated at about ¢3.25 billion. The government however accepted about ¢3.09 billion of the total bids. According to the figures from the Central Bank, ¢2.143 billion of the total bids came from the 91-day bill, but the government accepted 2.114 billion. For the 182-day bill, the bids tendered were estimated at ¢674.64 million. However, the government accepted about ¢548.72 million. All of the ¢433.28 million offered…

18 Sep

T-bills: Interest Rates Climb To 32.17%; Government Misses Target By 10.8%

Wontumi1Business182-day, 364-day, 91-day, BoG, Interest Rates

Interest rates climbed again on the money market indicating the rising cost of government’s domestic debt. According to auction results by the Bank of Ghana, the yield on the 364-day bill went up by 0.34% to 32.17%. That of the 91-day bill also shot up to 28.12% from 27.28% the previous week. The rate on the 182-day bill also increased marginally by 0.28% to 29.39%. Interest rates have gone up consistently since April 2023 after the Treasury forced the rates down in March 2023. Therefore, market watchers and analysts are worried about the impact of the rising cost of the…

11 Sep

T-bills Auction: Government Achieves 13.21% Oversubscription; Interest Rates Reach Nearly 32%

Wontumi1Business182-day, 364-day, 91-day, BoG, Interest Rates, Treasury Bills

Government exceeded its treasury bills target by over 13 percent to the tune of ¢2.94 billion, but interest rates continued to surge disturbingly. According to the latest auction by the Bank of Ghana, interest rates reached almost 32%. The target for this auction was ¢2.601 billion, but the bids tendered were ¢2.944 billion. About ¢2.907 billion were accepted. Majority of the bids came from the 91-day bill in which about ¢2.206 billion were tendered. However, the government accepted ¢2.202 billion. For the 182-day bill, a little above ¢322 million were offered, but the government accepted ¢289.19 million. With regard to…

04 Sep

T-bills Auction: Interest Rates Hit 31.65%; Government Achieves 15% Oversubscription

Wontumi1Business182-day, 364-day, 91-day, Interest Rates, T-Bills

Interest rates continued to surge on the money market, signaling an increasing cost of domestic debt. According to the latest results by the Bank of Ghana, interest rates went up across the yield curve. This is coming after the government forced rates down in March 2023, following the completion of the first phase of the Domestic Debt Exchange Programme. The yield on the 364-day bill went up by 0.41% to 31.65%. Again, the rate of the highly patronized 91-day bill shot up to 27.36%, from 27.02%. Similarly, the rate on the 182-day bill increased from a marginal 0.10% to 28.71%.…

28 Jul

Ghana To Reach Debt Deal With External Creditors In Quarter 2, 2024 – Fitch Solutions

Wontumi1BusinessBoG, external creditors, Fitch Solutions, Ghana, Interest Rates

Fitch Solutions believes that Ghana will reach a debt deal with its external creditors in the second half of 2024. According to the UK-based firm, this should provide tailwinds to the exchange rate and further limit imported price pressures. “Indeed, we believe that Ghana will reach a debt deal with its external creditors in H224 [half-year 2024], which should provide tailwinds to the exchange rate and further limit imported price pressures”. It added that real Gross Domestic Product growth will remain well below trend on the back of fiscal consolidation efforts under the IMF programme. However, the Central Bank will…