The cost of borrowing in the treasury market continues to rise, reaching levels not seen since March of this year. This increase occurs despite the government’s record of a fourth consecutive week of oversubscription for short-term securities, following a disappointing third quarter.

As of the close of the auction last Friday (Tender 1927), the government had received and accepted a total of GH¢ 4.0782 billion against its target of GH¢ 4.010 billion, resulting in an oversubscription of just 1.7%.

However, this subscription rate represents a decline in performance in the treasury market. In the previous auction (Tender 1926), the government raised a total of GH¢ 4.421 billion, surpassing its target of GH¢ 3.980 billion by 11.09%.

Despite sustained oversubscription, the government has been grappling with rising interest rates. The 91-day bill sold for an average of 26.5645%, up from the 26.1901% recorded a week prior, marking levels not seen since the auction on March 11, 2024. The 182-day bill sold for 27.5848%, while the 364-day bill crossed the 29% mark, selling at an average of 29.0378%.

For the upcoming auction (Tender 1928), the government has set an ambitious target of GH¢ 5.623 billion.