Interest rates on government securities will continue to remain above 14 percent for the rest of the year because of government’s appetite for borrowing.
Government exceeded its Treasury bills sale target for the fifth week running by GHs46.39 million during the last auctioning.
This was after the Bank of Ghana sold GHS1.07 billion of the short term securities [91-day and 182 day T-bills].
Senior Economic Analyst with Databank Research, Courage Martey tells Joy Business the improved liquidity on the market cannot push interest rates down.
“The over subscription or the improved liquidity on the market has not spared yields from going up. If you go towards the middle segment to the back-end of the curve also, yields have gone up across that level. What we noticed is that before July, yields were lower at the start of the year but since after July, the middle to back-end of the curve has recorded an average increase of year-to-date of 65 basis points at the middle to back-end of the curve.”
He further explained that “yields are slightly pushing up across the curve but that is because the market has seen that the government has a high borrowing requirement because of the revenue shortfalls and also higher expenditure commitment they have to embark on, largely due to covid-19 and partly to execute the agenda for the year.”
Government public debt stock stood at about GHS263 billion as of the end of July, 2020.
Government exceeded T-bills sale by 4.5%
Government exceeded its Treasury bills sale target for the fifth week running by 4.5%.
This was after the Bank of Ghana sold GHS1.073 billion of short term securities.
Analysts attributed this to improve liquidity on the market.
Latest Stories
-
Ukraine’s Grain Initiative raises over $200m, provides lifeline amid global food crisis
14 mins -
Dancehall queen Spice donates to students of 3 basic schools in Accra through MYO Global Foundation
22 mins -
Kamal-Deen Abdulai urges Nanton to help NPP break the 8
42 mins -
TVET is not a dumping ground for underperforming students – C/R Minister
44 mins -
BoG Governor calls for increased preparedness to respond to emerging financial sector challenges
1 hour -
IGP calls on public to aid Police in ensuring peace during 2024 election
1 hour -
Miner jailed, fined for stealing motorbike worth GH¢13,500
2 hours -
Dozens killed in Pakistan sectarian violence
2 hours -
Police place GH₵20K bounty on group over election violence threats
2 hours -
From classrooms to conservation: 280 students embrace sustainability at Joy FM/Safari Valley’s Second Eco Tour
3 hours -
Jordan Ayew’s late goal not enough as Leicester lose at home to Chelsea
3 hours -
Global Crimea Conference 2024: Participants reject Russian claims to Soviet legacy
4 hours -
Jospong Group, Uasin Gishu County sign MoU to boost sanitation services in Kenya
4 hours -
Thomas Partey stunner helps Arsenal overcome Nottingham Forest
4 hours -
Over half of cyber attacks in Ghana, rest of Africa target government and finance, says Positive Technologies
4 hours