Interest rates in the short-term Treasury market rose further to 31% on September 10, 2022, as investors continue to show interest in the short-term securities.

Though government exceeded its target for the 13th week running, the cost of repaying these loans will go up.

Since inflation begun rising about five months ago, interest rates have been escalating consistently to compensate investors.

This has boosted investor interest in Treasury bills.

However, the rising interest payments is a matter of concern to many economists, analysts and market watchers.

According to the auction results by the Bank of Ghana, the 91-day Treasury bill went for 29.48%, compared to 29.04% the previous week, whilst the 182-Day T-bill traded at 31.05%, as against 30.22% the earlier week.

Similarly, the T-bills sale was oversubscribed by 35% to the tune of ¢2.287 billion.

Though the investors still showed more interest in the 3-months bill that of the 6 months bill also witnessed significant interest this time around.  

¢860.92 million worth of the bids came from the 182-day bill. ¢815.70 million were however accepted.

For the 91-day bill, ¢1.427 billion of the bids were tendered in, but ¢1.410 billion were accepted.

The target for this auction was ¢1.682 billion.