The government surpassed its treasury bill auction target last week as the market continued to experience sufficient liquidity.
Treasury bill sales recorded 13.21 percent oversubscription of its target of GH¢2,601 billion.
According to figures from the Bank of Ghana, investors presented GH¢2.94 billion as against government’s target of GH¢2.60 billion
A chunk of the bids came in from the 91-day bill where government accepted all the GHS 2.20 billion tendered by the investors for the three-month financial instrument.
The 182-day also tendered in GH¢322.56 million, but government accepted GH¢289.19 million.
However, the 364 Day bill tendered in GH¢415.78 million and government accepted all.
Meanwhile, interest rates continued to surge on the money market.
Due to government’s heavy borrowing through the Treasury bills market, the rates jumped to about 31.97 percent.
Some analysts and market watchers have blamed the development on the fact that the Treasury bills market has become the only source of raising funds locally by government to support its operations.
Ghana cannot go to the international capital market to raise funds due to unfavourable credit ratings and high debt levels.
