Interest rates soar to 35% as government slightly misses Treasury bill target

Interest rates continued to soar in the money market, exceeding 35% to reflect the rise in the inflation rate of 40.4% in October 2022.

However, the government fell short of the 3.7% treasury bill sales target.

It’s the 5e consecutive week that the government has not met its target, but from the figures, liquidity seems to be improving.

Again, the government was looking to refinance the upcoming ¢1.711 billion treasury bill maturities, so getting ¢1.983 billion is a good sell.

According to auction results, most investors bought the 91-day Treasury bills as the government raised ¢1.82 billion.

However, the yield on the 3-month bill rose to 34.3%.

For the 182-day treasury bills, the offers presented were ¢145.69 million, but the government accepted ¢142.03 million. The interest rate was 35.4%.

That of 364 days rose to 35.07%. The government, however, accepted ¢7.86 million of the ¢10.03 million bids submitted.

Despite a spike in interest rates, there is still a negative real return between interest rates and inflation.

Securities Tenders submitted (GH¢) Bids Accepted (GH¢)
91 day invoice 1.827 billion 1.827 billion
182 day invoice 142.69 million 142.03 million
Invoice 365 days 10.03 million 7.86 million
Total 1.983 billion 1.983 billion
Target 2.060 billion. 2.060 billion

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