The Treasury market’s interest rates are rising steadily, signifying the government’s rising borrowing costs and their effects on the economy.
This is happening despite the fact that the government has for the fourteenth week in a row met its goal from the sale of Treasury securities.
Interest payments will undoubtedly increase further as a result of rising interest rates.
Although investor interest in the market has increased dramatically, many economists, analysts, and market observers are deeply concerned about the high pricing of these products.
The Bank of Ghana’s auctioning results show that the yield on the 91-day Treasury bill increased by 0.42% to 29.90%.
However, the 182 day bill is now selling for 31.14%, up from 31.05% last week.
The price for the one-year bill is currently 30.47%.
During this time, the government raised 1.91 billion, or around 6% more than its goal. The auction’s goal was 1.717 billion yen.
Investors were able to get a portion of the bids for the 91-day T-bill, which was priced at 1.529. However, the government chose to accept one of the proposals for 1.520 billion.
The 182-day T-bill, for which 261.74 million was tendered, came next. Nevertheless, the government chose to accept 248.92 million of the offers.
The government raised 147.15 million for the 364 day T-bill.
A related issue is that the Monetary Policy Committee of the Bank of Ghana is anticipated to start meeting regularly tomorrow, from September 20 to September 23, 2022, in order to come up with a plan to stop the growing interest rates that are being sparked by the rising inflation.