Treasury Rates for June 29th 2020

Security	Interest Rates
91 – Day Bill	13.9526 %
182 – Day Bill	14.0150 %
364 – Day Bill	16.8938 %
5 – Year Fixed Rate Bond	19.2500 %

Short-term Government of Ghana (GoG) Treasury bill rates failed to build on previous week’s rise despite expectations of higher inflation rates. Treasury yields have in the past three months remained stuck in a one year low level in line with efforts by the government to drive down the cost of borrowing.

This week, the 91-day bill declined by 5 basis points to erase part of previous week’s 7 bps gain. It declined to 13.9526% this week from 14.0089% recorded last week.

The yield on the 182-day bill also dipped by 4 bps this week to erase part of previous weeks’ gains. It declined from 14.0551% posted last week to 14.0150% this week, its lowest in 6 weeks.

The 364-day bill, conversely, gained 4 bps to recover from previous issuance’s 3 bps dip. It rose from 16.8451% recorded at its last issuance to 16.8938% this week, its highest since March, 2020.

Week-on-Week Changes for 29^th June, 2020

	22-Jun-20	29-Jun-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0089%	13.9526%	-0.0563	-0.4019%
182 – Day	14.0551%	14.0150%	-0.0401	-0.2853%

Auction results from Bank of Ghana (BoG) tender 1700 further indicated that after several weeks of strong demand for the government’s short-term bills, demand this week remained weak as it fell short of the government’s target amount.

A total of GHC 1,032.48 million bids were tendered for the 91-day, 182-day, and 364-day bills, against the government’s target amount of GHC 1,238.00 million. The government subsequently accepted all bids tendered.

The government as part of its issuance calendar also issued a 5-year fixed-rate bond in which it sought to raise a total of GHC 800.00 million. Investor participation came in strong as the bond was hugely oversubscribed. The government accepted all GHC 1,458.63 million bids tendered at a yield of 19.2500%.

Next week, the government is expected to increase its target amount to raise a total amount of GHC 484.00 million from 91-day and 182-day bills.