Interest rates remarkably fell significantly within just a week, following the government’s decision to reject bids with higher yields.
According to the latest auction by the Bank of Ghana, the 91-day yield fell once again to 19.04% from 24.16% last week.
From a high of 35% a week ago, interest rates on the short term securities have dipped significantly on the yield curve.
Whilst the 91-day bill yield has fallen by 16%, that of the 182-day bill has plunged by about 13%, going for 22.84%.
The 364-day bill has also dropped by about 9% to 26.82% on Friday March 10, 2023.
The significant fall of the yield of the T-bills means government will further save interest costs.
Last week, government saved about ¢220 million from the reduction in T-bills yields.
Analysts and market watchers expect the rates to come down in the coming weeks.
Government secures ¢4.20bn from T-bills
Meanwhile, the government got about ¢4.20 billion from the sale of T-bills, about 74% oversubscription.
It however accepted ¢3.31 billion of the total bids.
About ¢1.99 billion came from the 91-day T-bill, whilst the bids for the 182-day T-bill was estimated at ¢1.16 billion. Government however accepted ¢1.43 billion and ¢924 million for the 3-months and 6-months bills.
For the 364-day bill, government secured ¢1.05 billion, with the government accepting ¢959 million of the total bids.
| Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) |
| 91-day | 1.991 billion | 1.434 billion |
| 182-day | 1.161 billion | 924 million |
| 364-day | 1.056 billion | 959 million |
| Total | 4.209 billion | 3.318 billion |
| Target | 2.417 billion |
