| Security | Interest Rates |
| 91 – Day Bill | 13.9503 % |
| 182 – Day Bill | 14.0189 % |
| 364 – Day Bill | 16.7509 % |
| 2 – Year Fixed Rate Note | 18.7500 % |
This week, short-term Government of Ghana (GoG) Treasury bill rates climbed up marginally after recording a dip last week. The short-end of the Treasury yield curve has seen a decline despite stable consumer prices as the government aims to drive down cost of credit in the country.
The 91-day bill gained 2 basis points (bps) this week to recover part of previous week’s 10 bps dip. It rose to 13.9503% this week from 13.9236% posted last week.
The 182-day bill recovered half of previous week’s 2 bps decline as it rose from 14.0066% posted last week to 14.0189% this week.
The 364-day bill rose marginally by a 1 bps this week to recover part of a 4 bps decline recorded at its last issuance date.
Week-on-Week Changes for 11th May, 2020
| 4-May-20 | 11-May-20 | CHANGE | PERCENTAGE CHANGE | |
| 91 – Day | 13.9236% | 13.9503% | 0.0267 | 0.1918% |
| 182 – Day | 14.0066% | 14.0189% | 0.0123 | 0.0878% |
Auction results from Bank of Ghana (BoG) tender 1693 further indicated that the demand for the government’s short-term bills failed to meet expectations as investors generally focused on a much longer-term instrument.
A total of GHC 849.82 million bids were tendered for the 91-day, 182-day, and 364-day bills, against the government’s target amount of GHC 991.00 million. The government, however, accepted only GHC 833.88 million of total bids tendered.
As per the government’s issuance calendar for the second quarter of the year, the government issued a 2-year term note in which it sought to raise GHC 700.00 from the domestic market. A total of GHC 668.76 million bids were tendered at a yield of 18.75%. This represents a 1.45 percentage points decline from 20.20% recorded at the last issuance in February, 2020.
Next week, the government is expected to reduce its target amount to raise a total amount of GHC 758.00 million from 91-day, 182-day, and 364-day bills.
