Treasury Rates for May 18th 2020

Security	Interest Rates
91 – Day Bill	13.8698 %
182 – Day Bill	14.0039 %
364 – Day Bill	16.7038 %

Short-term Government of Ghana (GoG) Treasury bill rates failed to build on previous week’s rise this week despite an uptick in the recent consumer price index reading. Data released by the Ghana Statistical Service showed that the inflation rate for April climbed into the double digits at 10.6% for the first time in more than 20 months buoyed by price hikes in the partial locked down areas.

The yield on the 91-day bill lost 8 basis points (bps) this week to erase part of previous weeks’ gains. It fell from 13.9503% posted last week to 13.8698% this week, it lowest in four weeks.

The 182-day bill fell marginally this week to erase previous week’s 1 bps rise. It weakened to 14.0039% this week from 14.0189% posted last week.

The 364-day bill similarly declined by 4 bps this week to 16.7038% from 16.7509% posted last week.

Week-on-Week Changes for 18^th May, 2020

	11-May-20	18-May-20	CHANGE	PERCENTAGE CHANGE
91 – Day	13.9503%	13.8698%	-0.0805	-0.5770%
182 – Day	14.0189%	14.0039%	-0.0150	-0.1070%

Auction results from Bank of Ghana (BoG) tender 1694 further showed that the demand for the government’s short-term bills failed to meet expectations for the second consecutive time.

A total of GHC 652.94 million bids were tendered for the 91-day, 182-day, and 364-day bills, against the government’s target amount of GHC 758.00 million. The government subsequently accepted all bids tendered.

Next week, the government is expected to increase its target amount to raise a total amount of GHC 909 million from 91-day and 182-day bills.