Treasury Rates for August 10th 2020

Security	Interest Rates
91 – Day Bill	13.9866 %
182 – Day Bill	14.0780 %
364 – Day Bill	16.9433 %

This week, short-term Government of Ghana (GoG) Treasury bill rates posted a mixed performance ahead of the announcement of the inflation rate for July. Although the rates of inflation have in recent times surged beyond the central bank’s medium-term inflation target band of 8.0% ± 2.0%, it has however failed to lift the yields on government assets.

The 91-day bill was little changed this week as it declined marginally after posting a 2 basis points (bps) gain last week. It fell to 13.9866% this week from 13.9933% posted last week.

The 182-day bill recorded its first increase in three weeks as it gained 3 bps to recover part of previous weeks’ dips. It rose from 14.0520% posted last week to 14.0780% this week, its highest since early July.

The yield on the 364-day recovered from previous week’s decline as it gained 12 bps this week. It climbed from 16.8194% at its last issuance to 16.9433%, its highest in more than four months.

Week-on-Week Changes for 10^th August, 2020

	3-Aug-20	10-Aug-20	CHANGE	PERCENTAGE CHANGE
91 – Day	13.9933%	13.9866%	-0.0067	-0.0479%
182 – Day	14.0520%	14.0780%	0.0260	0.1850%

Auction results from Bank of Ghana (BoG) tender 1706 further indicated that demand for the government’s short-term assets was sluggish as rates continue to struggle to post a recovery after it plunged in March.

A total of GHC 918.87 million bids were tendered for the 91-day, 182-day, and 364-day bills, against the government’s target amount of GHC 1,225.00 million. The government subsequently accepted all bids tendered.

Next week, the government is expected to slightly reduce its intended target amount to raise a total amount of GHC 1,025.00 million from 91-day, 182-day, and 364-day bills.