Government exceeded its Treasury bills sale target by 16.5%, a week after failing to achieve the target for the auctioning of the short term securities.

However, interest rates continue to surge, surpassing the 24%.

The increase in interest rates may have contributed to the successful sale of the short term instruments. 

Interest rate on the 91-day T-bills which was the most patronised went up from 23.69% the previous week to 24.5%, whilst that of the 6-months bill also shot up to 25.98%, from 25.4 percent.

The rising interest rates on the domestic market indicates that government will pay more interest on these financial instruments when they mature.

According to the May 2022 Monetary Policy Report by the Bank of Ghana, total interest payments amounted to ¢10.608.billion over the review period, higher than the envisioned target of ¢10.037 billion.

Meanwhile, a little above ¢1.31 billion was realized from the sale of the 3-months bill which will mature on September 20^th 2022.

A careful analysis indicates that the investors largely the banks prefer the 91-day T-bills. The target for the bills was ¢1.325 billion.

Government however secured ¢1.541 billion from the sale of the short term instruments

It is the hope of many analysts and market watchers that the improved liquidity will be sustained in the upcoming auctioning on Friday June 24th and subsequently.