Borrowing costs

Interest rates rise further as government borrowing costs rise

This comes despite the government hitting its target to sell Treasuries for the 14th week in a row.

Rising interest rates will certainly drive up interest payments even further.

Although investor interest in the market has increased significantly, the high price of these instruments is a major concern for many economists, analysts and market watchers.

According to the result of the auction published by the Bank of Ghana, the yield on the 91-day Treasury bill rose by 0.42% to 29.90%.

The 182-day bill, however, stands at 31.14%, down from 31.05% the previous week.

The one-year bill is also trading at 30.47%.

Meanwhile, the government, according to myjoyonline, has mobilized 1.91 billion, about six percent above the target. The auction target was ¢1.717 billion.

Part of the offers from the 91-day Treasury bill, to the tune of 1.529¢, were obtained from investors. However, the government accepted ¢1.520 billion of the offers.

This was followed by the 182-day treasury bond in which ¢261.74 million was offered.

The government, however, accepted ¢248.92 million of the offers.

For the 364-day treasury 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 start its regular meeting tomorrow, September 20-23, 2022, to come up with a strategy to curb rising interest rates, driven by rising inflation.