Treasury Rates for October 12th 2020

Security	Interest Rates
91 – Day Bill	14.0536 %
182 – Day Bill	14.1092 %

Ahead of the announcement of consumer price data for September, short-term Government of Ghana (GoG) Treasury bill rates posted a mixed performance where the 91-day bill posted its third consecutive rise whilst the 182-day bill struggled to post a comeback after previous week’s dip. The rate of inflation for the last month of the third quarter will be expected to further inch towards the Bank of Ghana medium-term inflation target band of 8.0% ± 2.0% as price pressures on some food items eases.

The yield on the 91-day bill gained 1 basis point (bps) to build on previous week’s 1 bps gain. It rose from 14.0461% posted last week to 14.0536% this week, its highest in 6 weeks.

The 182-day failed to recover from previous week’s 1 bps dip as it further declined by 3 bps this week. It declined from 14.1386% posted last week to 14.1092% posted this week, its lowest in 4 weeks.

Week-on-Week Changes for 12^th October, 2020

	5-Oct-20	12-Oct-20	CHANGE	PERCENTAGE CHANGE
91 – Day	14.0461%	14.0536%	0.01	0.0534%
182 – Day	14.1386%	14.1092%	-0.03	-0.2079%

Auction results from Bank of Ghana (BoG) tender 1715 further showed that demand for the government’s short-term debt assets continued to rise to beat the government’s target despite expectations of slower inflation rates.

A total of GHC 919.34 million bids were tendered for the 91-day and 182-day bills against the government’s target amount of GHC 876.00 million. The government accepted all bids tendered.

Next week, the government will be expected to reduce its intended target amount to raise a total of GHC 733.00 million from 91-day, 182-day, and 364-day bills.