| Period | Interest Rates |
| 91 – Day | 14.6634% |
| 182 – Day | 15.0684% |
| 5 – Year Fixed Rate Bond | 19.7500% |
This week, short-term Government of Ghana (GoG) Treasury bill rates weakened for the third consecutive time despite an upward movement in the consumer price index. The latest inflation rate for the month of March was reported at 9.3%, up by 10 basis points (bps) after an upward adjustment in the prices of petroleum products at the pumps and a Cedi depreciation fed into high prices of food and non-food inflation items.
The 91-day Treasury bill failed to recover from previous weeks’ lows as it further dipped by 4 bps to fall to its lowest since mid-January. The yield on the 91-day bill declined from 14.7078% posted last week to 14.6634% this week.
The yield on the 182-day bill softened by 3 bps points to build on last week’s 2 bps decline. It softened from 15.1005% recorded last week to 15.0684% this week, the least in 15 weeks.
Week on week changes for 22nd April, 2019
| 15-Apr-19 | 22-Apr-19 | CHANGE | PERCENTAGE CHANGE | |
| 91 – Day | 14.7078% | 14.6634% | -0.0444 | -0.3019% |
| 182 – Day | 15.1005% | 15.0684% | -0.0321 | -0.2126% |
Auction results from Bank of Ghana (BoG) tender 1638 further showed that demand for the government’s short-term Treasury instruments narrowly missed the government’s expectations after three weeks of consecutive oversubscriptions.
Total bids tendered for the 91-day and 182-day bills came in at GHC 708.94 million against the government’s target amount of GHC 716.00 million. The government, however, accepted only GHC 591.07 million bids of the total tendered.
As part of the issuance calendar for the second quarter of the year, the government issued a 5-year fixed rate term bond which was a little oversubscribed. The yield on the 5-year fixed rate bond jumped by 325 bps from 16.5000% in February last year to 19.7500% this week. The government accepted all GHC 1,061.08 million bids tendered against its target amount of GHC 1,000.00 million.
Next week, the government is expected to further increase its target amount to raise a total of GHC 940.00 million from 91-day, 182-day, and 364-day bills.
The Treasury Yield Curve
