Govt’s rising need for cash excites securities investors

Interest rates on government debt have risen to 16 percent up from 15 percent in July, with investors taking advantage of government’s increased need for cash to finance budget shortages.

Last week, government raised Shs1.1 trillion in the bond market through three securities – one with a maturity of two years, and two others with a maturity of five and 15 years, respectively.

The three have corresponding yields of 15.5 percent, 16 percent, and 16.5 percent, respectively.

Interest rates have been surging, rising by an average of 50 basis points…