Investors have dumped treasury bills for the Bank of Ghana bills, which are giving about a 28% return.
This is due to the recent sharp decline in yields. Indeed, the government has in the last T-bills auction, recorded undersubscription.
“We thus expect the 100 basis points hike in the policy rate to sustain attraction for the Open Market Operations (OMOs) securities, draining demand for T-bills and limiting the downside for yields.