However, the rising yields come with increased costs for the government as interest expenses may likely go up.

According to myjoyonline.com interest rates on the yield curve continued to surge as liquidity increased in the market.

However, the yields are lower than the current inflation rate of 31.7 per cent (July 2022).

The rising interest rates indicate that the government will spend more on interest payments for this year.

Whilst the 91-day T-bill went for 27.7 per cent, higher than the previous week’s 27.3 per cent that of the 6-month traded at 29.2 per cent, compared with 28.7 per cent the preceding week.

Meanwhile, the government secured ¢1.09 billion from the sale of the short-term securities, about 33 per cent oversubscription.

Once again, GH¢911.3 million was mobilised from the 91-day bill as investors were more interested in that financial instrument.

GH¢185.82 million was however obtained from the sale of the 182-day T-bill.

Despite improved liquidity in the money market, Ghana’s interest rate remains one of the highest in sub-Saharan Africa.

Meanwhile, the rising inflation and downgrade of the country’s credit rating pose an upside risk to yields.

Inflation quickened to 31.7 per cent (+190 basis points), fuelled by non-food inflation, particularly transport, utilities, and household furnishing and equipment.

Databank Research said investors would continue to hold out for higher yields to cover the inflation-induced losses.