Treasury Rates For July 1st, 2019

Period	Interest Rates
91 – Day	14.7438%
182 – Day	15.1999%
364 – Day	17.9162%

This week, short-term Government of Ghana (GoG) Treasury bill rates tumbled after posting a mixed performance last week. The yield on the 91-day bill ended two weeks of continuous tightening as it dipped to a 9 week low. The yield on the 182-day failed to post a recovery as it extended its weekly losses to 6 weeks in a role in line with recent inflation reading which recorded its first dip in 2019. Data released by the Ghana Statistical Services indicated that the inflation rate for May, 2019 fell from 9.5% to 9.4% after surging by a 50 basis points (bps) in the first four months of the year.

The yield on the 91-day Treasury bill weakened by 3 bps to erase parts of its recent gains. It fell from 14.7714% posted last week to 14.7438% this week.

The yield on the 182-day bill fell by 3 bps to build on previous week’s 2 bps drop. It weakened to 15.1999%, its lowest since end-April, 2019 from 15.2264% posted last week.

The government also issued a 364-day paper which fell to its lowest in 6 months. It dipped by 1 bps to 17.9162% this week from 17.9228%.

Week on week changes for 1^st July, 2019

	24-Jun-19	1-Jul-19	CHANGE	PERCENTAGE CHANGE
91 – Day	14.7714%	14.7438%	-0.0276	-0.1868%
182 – Day	15.2264%	15.1999%	-0.0265	-0.1740%

Auction results from Bank of Ghana (BoG) tender 1648 further showed that there was an up-tick in demand for the government’s short-term Treasury instruments as demand beat expectations.

Total bids tendered for the 91-day, 182-day, and 364-day bills came in at GHC 914.97 million against the government’s target amount of GHC 875.00 million. The government, however, accepted GHC 890.90 of total bids tendered.

Next week, the government is expected to increase its target amount to raise a total of GHC 1,040.00 million from 91-day and 182-day bills.