After three consecutive weeks of undersubscription, the government has finally exceeded its target in this week’s treasury auction. However, this has come at a cost, as interest rates have surged slightly over the past week.

In last week’s auction, Tender 1924, the government aimed to raise GH¢4.565 billion from the treasury market after failing to meet the GH¢5.98 billion target for Tender 1923, which recorded a 40% undersubscription.

By the end of the auction, the government received and accepted total bids amounting to GH¢4.614 billion, exceeding its target by a marginal 1.08%. The bids included GH¢3.888 billion in 91-day bills, GH¢500.68 million in 182-day bills, and GH¢225.42 million in 364-day bills.

However, the cost of borrowing in the treasury market has risen over the past week. The average rate for the 91-day bill increased from 25.4568% to 25.6182%, while the average rate for the 182-day bill rose from 26.80% to 26.9045%. The rates for the 364-day bills also increased, but at a slower pace, from 28.5173% to 28.5814%.

For the next auction, Tender 1925, the government has once again revised its target downward to GH¢4.035 billion, aiming to consolidate the recent oversubscription.