Treasury Rates for May 25th 2020

Security	Interest Rates
91 – Day Bill	14.0619 %
182 – Day Bill	14.0469 %

This week, short-term Government of Ghana (GoG) Treasury bill rates climbed up from previous week’s decline in line with a surge in the recent consumer price index. Data released by the Ghana Statistical Service showed that the inflation rate for April soared into the double digits to 10.6% for the first time in more than 1.5 years buoyed by price hikes in the partial locked down areas in Greater Accra and Ashanti regions.

The yield on the 91-day bill posted its biggest weekly rise in 2020 to climb back to the region of 14.0%. It rose by 19 basis points (bps) from 13.8698% recorded last week to 14.0619% this week, its highest since early April.

The 182-day bill gained 4 bps this week to recover part of previous week’s dip. It rose from 14.0039% posted last week to 14.0469% this week, its highest since mid-April.

Week-on-Week Changes for 25^th May, 2020

	18-May-20	25-May-20	CHANGE	PERCENTAGE CHANGE
91 – Day	13.8698%	14.0619%	0.1921	1.3850%
182 – Day	14.0039%	14.0469%	0.0430	0.3071%

Auction results from Bank of Ghana (BoG) tender 1695 further indicated that after weeks of sluggish demand for short-term government assets, demand rose this week to beat the government’s target amount as investors remained hopeful of a rebound in Treasury rates.

A total of GHC 1,071.22 million bids were tendered for the 91-day and 182-day bills, against the government’s target amount of GHC 909.00 million. The government subsequently accepted all bids tendered.

Next week, the government is expected to further increase its target amount to raise a total amount of GHC 1,123.00 million from 91-day, 182-day, and 364-day bills.