Interest rates near 36% as government achieves T-bills target

Interest rates neared 36% on the money market, though fell short of the October 2022 inflation of 40.4%.

This indicates that the return on investments remains negative.

According to the results of the treasury bills auction, the government for the first time in six weeks running recorded an oversubscription.

This could signal some level of investor confidence as government negotiates a deal with the International Monetary Fund for a programme. Again, liquidity has witnessed some improvement.

Indeed, the government secured about ¢1.65 billion, 41.7% increase in the sale of the short-term securities.

A chunk of the sale came from the 91-day T-bills, where about ¢1.38 billon was mobilised by the government. The bids tendered were ¢1.38 billon which the government accepted all.

This came at a yield of 35.19%, higher than 34.3% the previous week.

For the 182-day Treasury bills, the bids tendered were ¢274.99 million, which government accepted all. The interest rate was 35.98%, 0.58% higher than the past week%.

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