The Government of Ghana last Friday at its first weekly auction of treasury bills in June, exceeded its auction target by 19.31%, raising approximately GH¢5.25 billion as against the GH¢4.4 billion target it had set for the tender 1906.

This however came at some cost, as there was a reversal in the downward trend of interest rates seen over the past weeks. Rates for the 182 & 364 day bills saw a 0.01% increase, rising from the 26.92% & 27.91% they recorded in tender 1905 to 26.93% and 27.92% respectively. Rates for the 91-day bills on the other recorded a rather negligible rise of 0.001%, selling at an average of 25.0386%, with all bills bided for a rates higher than the current headline inflation rate of 25.0%.

Government at the auction accepted all bids tendered, accepting GH¢ 3.399 billion, GH¢ 1.689 billion & GH¢ 167.05 million worth of 91,182 and 364-day treasury bills tendered respectively.

The GH¢ 167.05 million worth of 364-day bill bids received last Friday is significantly lower than the GH¢ 201.49 million recorded the week prior, despite an overall higher target, potentially signaling a reserved positioning of investors for longer termed securities.

Government for the next auction tender 1907, this Friday has further revised upward its target to GH¢ 4.9 bn.

Meanwhile, the Ghana Statistical Service will this week announce consumer inflation figures for May 2024. With some analysts anticipating a significant fall in the inflation rate, it is expected that this Friday’s auction could once again see interest rates fall below 25%.