(Business in Cameroon) - In its recent report on the state of the CEMAC government securities market in October 2021, it appears that the cost of the treasury bills issued by Cameroon slightly rose during the period. 

Indeed, after dropping from a 3.11% peak in June 2020 to 1.98% in June 2021, the average interest rate on the bills issued by the country rose by 0.63 points to 2.61% in October 2021. 

This rate is not far from the 3.11% peak reached when the coronavirus was raging. The BEAC provides no reason explaining this rise but on closer observation, it seems it was due to declining liquidity in the coffers of investors who invested heavily in bonds and also to the poor dynamism of the secondary market. 

According to figures published by the BEAC, as of the end of October 2021, 71.7% of the yet-to-be-called government securities in the CEMAC market were bonds while 28.3% were treasury bills. In comparison, as of the end of June 2018, it was the other way round with treasury bills accounting for 73.8% of the yet to be called government securities. 

BRM