Cost of borrowing by government on the domestic money market has continued its marginal decline despite government recording an oversubscription of its weekly t-bills auction by 1.389%.

Although government had targeted raising GH¢3.555bn for the tender 1908, at the close of bidding however on Friday, June 21, 2024, government accepted total bids of GH¢3.604bn, some GH¢49.4m more than its target. This was a reversal in the undersubscription of GH¢66.41m recorded in the last auction, representing 1.355% of the GH¢4.9bn it sought to raise in Tender 1907.

Interest rates fell once more despite the oversubscription with the 91,182 and 365 day bills sold at average rates of 24.8675%, 26.8017% and 27.7878% respectively, marginally lower than the averages rates of 24.8698%, 26.8296% and 27.8197% they sold for in the Tender 1906.

91-day bills still remain the preferred bill option comprising GH¢2.76bn, representing 76.6% of all bids offered and accepted. The 182 and 365 day bills raised GH¢ 660.62m and GH¢ 182.42m each for government.

Government has subsequently revised downward it target for the next auction aiming to raise GH¢ 2.656 billion on Friday June 28.