Treasury Rates For February 3rd, 2020

Period	Interest Rates
91 – Day	14.6947 %
182 – Day	15.1444 %
364 – Day	17.8096 %

After the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) maintained its key rate at 16.0% for the sixth consecutive time, short-term Government of Ghana (GoG) Treasury bill rates posted a mixed performance this week. The MPC noted that the Ghanaian economy is firmly positioned on the path of stability with inflation forecasted to stay within the medium-term target band of 8.0 ± 2.0% thus the decision to keep the prime rate unchanged.

The 91-day bill rose marginally to recover part of previous week’s 1 basis point (bps) loss. It rose from 14.6898% posted last week to 14.6947% this week.

The 182-day bill posted its third consecutive decline this week as it dropped to a 2-month low. It fell to 15.1444% this week from 15.1477% posted last week.

The 364-day bill retreated this week after posting a 5 bps gain last week. It weakened from 17.8813% post last week to 17.8096% this week.

Week-on-Week Changes for 3^rd February, 2020

	27-Jan-20	3-Feb-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.6898%	14.6947%	0.0049	0.0334%
182 – Day	15.1477%	15.1444%	-0.0033	-0.0218%

Auction results from Bank of Ghana (BoG) tender 1679 further indicated that demand was sluggish as it failed to beat the government’s ambitious target amount.

Total bids tendered for the 91-day, 182-day, and 364-day bills came in at GHC 960.12 million against the government’s target amount of GHC 1,649.00 million. The government accepted all bids tendered.

Next week, the government is expected to further reduce its target amount to raise a total of GHC 711.00 million from 91-day and 182-day bills.