Interest rates continue to surge in the Treasury market, signaling the increasing cost of borrowing by the government and its impact on the business environment.
This is coming despite the government achieving its target from the sale of the Treasury securities for the 14th week running.
The rising interest rates will certainly push interest payments further up.
Though investor interest in the market has gone up significantly, the high pricing of these instruments is a major concern to many economists, analysts and market watchers.
According to the auctioning result published by the Bank of Ghana, the yield on the 91-day Treasury bill went up by 0.42 per cent to 29.90 per cent.
The 182 day bill is however going for 31.14 per cent, compared with 31.05 per cent the previous week.
The one-year bill is also trading at 30.47 per cent.
Meanwhile, the government according to myjoyonline, commobilised 1.91 billion, about six per cent more than the target. The target for the auctioning was ¢1.717 billion.
A chunk of the bids which came from the 91-day T-bill as ¢1.529 was secured from investors. However, the government accepted ¢1.520 billion of the bids.
This was followed by the 182-day T-bill in which ¢261.74 million was tendered.
The government however accepted ¢248.92 million of the bids.
For the 364 day T-bill, ¢147.15 million was sold by the government.
In a related development, the Monetary Policy Committee of the Bank of Ghana is expected to begin its regular meeting tomorrow, September 20 to September 23, 2022, to find a strategy to curb the rising interest rates, driven by the increasing inflation.