|
Period |
Interest Rates |
|
91 – Day |
14.5963% |
|
182 – Day |
15.0446% |
|
2 – Year Term Note |
19.7500% |
|
3 – Year Term Note |
20.0000% |
Short-term Government of Ghana (GoG) Treasury bill rates began the year building on the upward trajectory which began in the last quarter of 2018. Both the 91-day and 182-day bills ended the year, 2018, with a year-to-date appreciation of 9.63% and 8.18% respectively despite a continuous drop in the consumer price index. Inflation rate began 2018 at 10.3% and currently stands at 9.3%, its lowest in more than 5 years. This diverging trend between short-term Treasury yields and the consumer price index implies that investors will continue to enjoy higher real returns on their investments.
This week, the yield on the 91-day bill was little changed at 14.5963% from last week’s rate of 14.5944%.
The yield on the 182-day bill also tightened by 2 basis points (bps) to recover part of previous week’s 7 bps dip. It rose from 14.9597% recorded last week to 15.0060% this week.
Week on week changes for 7th January, 2018
|
|
31-Dec-18 |
7-Jan-19 |
CHANGE |
PERCENTAGE CHANGE |
|
91 – Day |
14.5944% |
14.5963% |
0.0019 |
0.0130% |
|
182 – Day |
15.0271% |
15.0446% |
0.0175 |
0.1165% |
Auction results from Bank of Ghana (BoG) tender 1623 further showed that demand for the short-term instruments remained weak as investors continue to increase their purchase of consumables. Total bids tendered and accepted for both the 91-day and 182-day bills came in at GHC 342.87 million against the government’s target amount of GHC 483.00 million.
As per the first quarter issuance calendar for the year, the government issued a 2-year term note at a yield of 19.7500%, up from 19.5000%. The government accepted all bids tendered for the 2-year term note which came in at GHC 378.04 million.
The government also issued its first 3-year fixed rate bond in 2019 at a rate of 20.0000%, its highest since March, 2017. This represents a 50 bps surge from the last 3-year fixed rate bond issued in October last year.
Next week, the government is expected to raise a total of GHC 428.00 million in 91-day and 182-day bills and GHC 125.00 million from a 1-year term note.
The Treasury Yield Curve
