T-Bill, Bond rates drop signaling relief for anxious borrowers

One of the most critical borrowing rates has slumped after the State relaxed its borrowing from the domestic market, to signal possible relief for thousands of ordinary customers servicing bank loans.

Interest on Government borrowing has dropped by more than four per cent over the last seven days to an average of 16.49 per cent on a loan repayable in six months - before the rate surge it attracted an interest of 11 per cent.