Interest rates on government’s Treasury bills increased slightly in the latest auction conducted by the Bank of Ghana.
The results showed that rates on the 91-day, 182-day and 364-day Treasury bills all rose when compared with the previous auction.
The 91-day bill increased from 5.73 per cent in Auction 2013 to 5.87 per cent in Auction 2014.
The 182-day bill also went up from 7.69 per cent to 7.79 per cent.
The 364-day bill recorded an increase from 12.82 per cent to 12.93 per cent, remaining the highest-yielding security among the three.
The latest results indicate that investors are demanding slightly higher returns for lending money to the Government.
Although the increases were moderate, they suggest a continuing upward trend in Treasury bill rates.
Higher Treasury bill rates mean the government may pay more to borrow money through the domestic market.
The Bank of Ghana auction results also showed strong investor interest, with bids worth billions of cedis submitted for the securities.
Overall, the latest auction recorded increases across all maturities, with the 364-day bill continuing to offer the highest return to investors.
Source: GNA
