Treasury Rates for June 22nd 2020

Security	Interest Rates
91 – Day Bill	14.0089 %
182 – Day Bill	14.0551 %

This week, short-term Government of Ghana (GoG) Treasury bill rates recovered part of previous week’s dip in line with the recent uptick in inflation readings. Latest consumer price data released by the Ghana Statistical Service for May showed that the rate of inflation climbed to 11.3%, its highest in more than 2 years.

The 91-day bill ended three weeks of consecutive declines as it rose by 7 basis points to recover part of previous weeks’ decline. It rose from 13.9296% posted last week to 14.0089% this week.

The yield on the 182-day bill gained 2 bps to recover from previous week’s 2 bps decline. It rose to 14.0551% this week from 14.0361% posted last week.

Week-on-Week Changes for 22^nd June, 2020

	15-Jun-20	22-Jun-20	CHANGE	PERCENTAGE CHANGE
91 – Day	13.9296%	14.0089%	0.0793	0.5693%
182 – Day	14.0361%	14.0551%	0.0190	0.1354%

Auction results from Bank of Ghana (BoG) tender 1699 further indicated that demand for the government’s short-term bills continue to strengthen on expectations of higher inflation rate as the tender amount was oversubscribed by 30%.

A total of GHC 976.62 million bids were tendered for the 91-day and 182-day bills, against the government’s target amount of GHC 749 million. The government, however, accepted only GHC 926.72 of total bids tendered.

Next week, the government is expected to increase its target amount to raise a total amount of GHC 1,238.00 million from 91-day, 182-day, and 364-day bills.