Interest rates hit the 30 per cent mark as Treasury securities sold a little above 30 per cent on the domestic primary market.
According to figures from the Bank of Ghana, the 91-day Treasury bill went for 29.04 per cent, about 0.44 per cent increase over the previous week.
That of the 182-bill traded at 30.22 per cent, compared with 29.94 per cent the previous week. The one-year bill however sold for 30.01 per cent, as against 29.5 per cent the previous week.
Singapore-based financial research firm, REDD Intelligence, had stated that the country is presently facing liquidity challenges, a situation causing rising interest rates.
The rising interest rates have boosted liquidity on the short end of the market.
According to the auction results, government secured ¢1.774 billion from the sale of the short term securities, about 2.9 per cent oversubscription. This is the 12th consecutive oversubscription achieved.
As usual, the 91-day T-bill was the most purchased, as investors bought a total of ¢1.448 billion. This was followed by the 182-day (¢218.66 million) and the 364-day bill (¢109.41 million).
Also, all the bids tendered were accepted.
Databank Research had reported that investor interest in Treasury bills continue to soar, as they take advantage of rising interest rates in the Treasury market.
This has been triggered by rising interest rates on the yield curve as investors focused on the short-term securities in the primary market for re-pricing benefits.